The Commodity Futures Trading Commission today issued an order simultaneously filing and settling charges with Canadian Imperial Bank of Commerce (CIBC) for repeatedly failing to timely report swap transactions to a registered swap data repository as required by the Commodity Exchange Act (CEA) and CFTC Regulations.
The order imposes a $1.25 million civil monetary penalty and orders CIBC to cease and desist from violating the CEA and CFTC regulations as charged. CIBC also admits the facts detailed in the order.
“Timely swaps reporting is a critical component of the swaps reporting regulatory regime, and it is essential to the overall effectiveness of the swaps reporting system,” said Division of Enforcement Director Ian McGinley. “Where there is substantial cooperation, including significant voluntary reporting of factual findings and remediation, as was the case here, the CFTC will not hesitate to recognize a swap dealer’s engagement and efforts to be in compliance with the law.”
Case Background
The order finds that from at least Jan. 2017 to the present, CIBC was late in reporting various types of data for its swaps transactions, including real time, primary economic terms, confirmation, snapshot and valuation data. CIBC consistently reported swap data outside the time requirements prescribed by Parts 43 and 45 of the regulations regarding millions of required reports. The untimeliness of CIBC’s swaps reporting was pervasive over the course of the relevant period and impacted thousands of swaps.
The reduced civil monetary penalty in the order recognizes CIBC’s substantial cooperation with the Division of Enforcement’s investigation and acknowledges CIBC’s representations regarding its remediation efforts, including retaining a consultant, conducting extensive historical analysis and devoting significant resources to remediation.
The Division of Enforcement staff responsible for this matter are Katie Rasor, Alejandra de Urioste, David MacGregor, Lenel Hickson, Jr. and Manal M. Sultan.
