The UK’s Financial Conduct Authority (FCA) has fined Merrill Lynch International (MLI) £34.5m for failing to report trading details in exchange traded derivatives.
The regulator accused the company of failing to report details of 68.5 million derivative transactions from 12 February 2014 to 6 February 2016. The reporting requirement was among the reforms launched after the 2008 financial meltdown to boost transparency in the financial services sector.
The watchdog said that the company co-operated in the probe and took remedial measures quickly.
The bank’s settlement at an early stage of the probe helped reduce its penalty from £49.3m to £34.5m, the regulator noted.
FCA executive director of enforcement and market oversight Mark Steward said: “Effective market oversight depends on accurate and timely reporting of transactions. The obligations under EMIR, as with MiFID, are key aspects of such oversight. It is vital that reporting firms ensure their transaction reporting systems are tested as fit for purpose, adequately resourced and perform properly.”