2nd Oct 2024 06:53
(Alliance News) - Barclays PLC is to pay a USD4 million penalty after being accused of breaching US trading rules.
The Commodity Futures Trading Commission (CFTC) said the bank violated rules related to how it reported swap transactions.
Swap transactions are financial transactions where two parties exchange cash flows or liabilities from different financial instruments, often including those linked to loans or bonds.
The order showed that Barclays failed to correctly or timely report millions of swap transaction between 2018 and 2023.
As a result, traders at the bank violated the Commodity Exchange Act (CEA) and CFTC regulations.
The US government agency said Barclays admitted to the failings highlighted in the order and acknowledge its conduct violated regulations.
Ian McGinley, director of enforcement at the CFTC, said: "Over the last year, the CFTC has imposed over USD60 million in penalties on six registered swap dealers, including Barclays here, in connection with swap data reporting violations.
"This resolution, which also includes admissions, reflects the division's ongoing commitment to ensure the costs of violating the law outweigh the costs of compliance."
Barclays declined to comment.
Barclays shares closed 2.0% lower at 220.00 pence each on Tuesday in London.
By Henry Saker-Clark, PA Deputy Business Editor
Press Association: Finance
source: PA
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