Barclays to pay £3m penalty after breaching US swap reporting rules

The Commodity Futures Trading Commission (CFTC) said the banking giant violated rules related to how it reported swap transactions.

Henry Saker-Clark
Tuesday 01 October 2024 16:30 BST
Barclays reported lower earnings and cut its profitability forecasts, as it revealed it is considering cutting costs (Alamy/PA)
Barclays reported lower earnings and cut its profitability forecasts, as it revealed it is considering cutting costs (Alamy/PA)

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Barclays is to pay a four million-dollar (£3 million) penalty after being accused of breaching US trading rules.

The Commodity Futures Trading Commission (CFTC) said the banking giant violated rules related to how it reported swap transactions.

Swap transactions are financial transactions where two parties exchange cash flows or liabilities from different financial instruments, often including those linked to loans or bonds.

The order showed that Barclays failed to correctly or timely report millions of swap transaction between 2018 and 2023.

As a result, traders at the bank violated the Commodity Exchange Act (CEA) and CFTC regulations.

The US government agency said Barclays admitted to the failings highlighted in the order and acknowledge its conduct violated regulations.

Ian McGinley, director of enforcement at the CFTC, said: “Over the last year, the CFTC has imposed over 60 million dollars in penalties on six registered swap dealers, including Barclays here, in connection with swap data reporting violations.

“This resolution, which also includes admissions, reflects the division’s ongoing commitment to ensure the costs of violating the law outweigh the costs of compliance.”

Barclays declined to comment.

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