Swap reporting failures costs Soc Gen $450,000

Societe Generale failed to report FX swaps following a system update error.

The US Commodity Futures Trading Commission (CFTC) has fined Societe Generale $450,000 for failing to properly report certain non-deliverable forward transactions to a swap data repository.

In 2014, Societe Generale implemented a software upgrade on its FX trading platform, which led to certain swap, forward and non-deliverable forward transactions being coded incorrectly.

The incorrectly coded transactions were then not reported and Societe Generale did not discover the error until 2015, when the French bank initiated a project to identify the trades affected.

“The accuracy and completeness of swap reporting are critical to the Commission’s mission to protect market participants and to ensure market integrity,” the CFTC said.

It added that Societe Generale cooperated and self-reported its errors, undertaking an internal investigation and taking action to correct the failures.