Bank of New York Mellon to Pay $5 Million Over Swap Reporting Failures

For persistent supervisory failings and swap reporting errors, BNY Mellon is subject to fines and is required to undergo an independent compliance examination.

A $5 million settlement has been reached between the U.S. Commodity Futures Trading Commission (CFTC) and the Bank of New York Mellon (BNY Mellon) to resolve the latter's charges of ongoing breaches in swap reporting. The CFTC's inquiry found that BNY Mellon mishandled its swap dealing operations and failed to properly record at least 5 million swap transactions between 2018 and 2023. The fine was the result of this noncompliance with reporting requirements and an earlier 2019 CFTC order.

The settlement requires that BNY Mellon must hire a third-party compliance expert in addition to paying the fine. To identify and correct the found shortcomings, this impartial expert will assess and improve the bank's compliance procedures. This action underscores how crucial it is for the financial industry to have strict control and precise reporting, especially when it comes to swap transactions, which are essential to financial markets.

The bank's stand on regulatory compliance was further highlighted by a BNY Mellon spokesman, who said that the settlement shows the bank's commitment to upholding financial standards and streamlining its operational procedures. The need of accurate reporting and strong oversight in preserving integrity and transparency in the financial sector is brought home by this case.