Citi fined $550k for swap data reporting failures

Citi failed to correctly report LEIs for tens of thousands of swap transactions.

Citigroup’s Global Markets business has been slapped with a $550,000 fine in the US for failing to report legal entity identifier (LEI) information for swap transactions.

The US Commodity Futures Trading Commission (CFTC) found Citi did not establish electronic systems and procedures necessary to report the correct data or supervise the reporting duties.

The reporting failures took place from at least April 2015 to December 2016 and Citi did not report LEIs properly for tens of thousands of swaps.

Authorities found the LEI reporting errors stemmed from a flaw in its swap data reporting systems, meaning it was not designed to re-report trades based upon changes to a counterparty’s LEI.

“The design flaw in Citi’s swap data reporting systems contributed to Citi failing to correct errors or omissions in its swap data reporting in a timely manner,” the CFTC said.

Furthermore, the investment bank did not perform supervisory duties with respect to LEI swap data reporting by failing to enforce existing policies.