U.S. CFTC penalizes UBS $500,000 for failing to retain audio recordings

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Oct 14 (Reuters) – The U.S. Commodity Futures Buying and selling Fee stated on Thursday it sanctioned banking group UBS AG $500,000 for failing to retain sure audio recordings for the time required underneath laws.

“The order finds that because of failures in UBS’s audio retention methods, the agency deleted over 1,000 hours of audio knowledge after sooner or later, together with voice recording information that had been required by CFTC laws to be retained for one 12 months”, the CFTC stated in a press release. The order requires UBS to pay a $500,000 civil financial penalty.

As of July 2019, UBS started prematurely deleting, after solely sooner or later of retention, information that included voice recordings containing pre-execution swaps commerce info that had been required to be retained for one 12 months, the CFTC stated.

It stated a UBS know-how analyst believed the voice recordings had been check information that didn’t have to be retained and re-designated these information which reset the retention interval from 5 years to sooner or later, the CFTC added.

In December 2019, UBS inadvertently realized concerning the untimely deletion of those audio information from its methods. The financial institution then did an inner assessment. The analyst’s error resulted in deletion of over 1,000 hours, or roughly 2.76% of complete U.S. recorded quantity, throughout July 8, 2019 via Dec. 23, 2019.

The deleted information included voice recordings containing pre-execution swaps info reminiscent of quotes, solicitations, bids, gives, directions, buying and selling, and costs that result in the execution of swaps, all of that are required by CFTC laws to be retained.

Upon discovering its potential violation of CFTC laws, UBS promptly self-reported this violation to CFTC, the fee stated, including that the financial institution cooperated within the investigation.

Reporting by Kanishka Singh in Bengaluru, Enhancing by Franklin Paul and David Gregorio


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