U.S. says Deutsche Bank to appoint swaps monitor after April outage

August 18, 2016 4:04 PM EDT

A logo of a branch of Germany's Deutsche Bank is seen in Cologne, Germany, July 18, 2016. REUTERS/Wolfgang Rattay


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NEW YORK (Reuters) - Deutsche Bank AG on Thursday agreed to retain a monitor to ensure it reports swaps data properly, to resolve U.S. regulatory charges over its handling of an April 16 system outage that has yet to be fully addressed.

The U.S. Commodity Futures Trading Commission said the bank was unable to report swap data for multiple asset classes for five days after the outage, and that its efforts to restore the services exacerbated existing problems and created new ones.

Some of these problems still persist, affecting market data made available to the public, and impeding the CFTC's ability to evaluate systemic risk in swaps markets, the regulator said.

The German bank's shortfalls reflected its failure to have adequate business continuity and disaster recovery plans in place, and violated a September 2015 CFTC order intended to prevent such shortfalls, the regulator added.

"Deutsche Bank's repeated violations warrant the intervention of a court-appointed monitor," CFTC Enforcement director Aitan Goelman said in a statement. The regulator said Deutsche Bank cooperated in the matter.

In a separate statement, Deutsche Bank said it understood the CFTC's concerns, and is "committed to meeting all regulatory requirements."

(Reporting by Jonathan Stempel in New York; Editing by Marguerita Choy)



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