Germany's Commerzbank has been fined £595,000 by the UK's Financial Services Authority (FSA) for failing to provide accurate transaction reports used to fight insider trading.
Firms are required to ensure they submit accurate data for reportable transactions by close of business the day after a trade is executed. The FSA uses this data to detect and investigate suspected market abuse: insider trading and market manipulation.
For two years Commerzbank either failed to report or reported inaccurately almost all of its reportable transactions says the watchdog despite the fact repeated reminders were sent out to firms reminding them of their responsibilities.
Alexander Justham, director of markets, FSA, says: "Complete and accurate transaction reports are an essential component of the FSA's market monitoring work. Commerzbank's reporting failures could have a damaging impact on our ability to detect and investigate suspected market abuse. Firms and their management must ensure they submit quality transaction reporting data."
The bank has since moved to address the concerns, commissioning a review of its transaction reporting process and committing money to the problem. It also received a 30% discount on the fine for co-operation.
Earlier this month the FSA fined Credit Suisse, Getco and Instinet a total of £4.2 million for similar transaction reporting failures.