US CFTC penalizes UBS $ 500,000 for failing to keep audio recordings

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The logo of Swiss bank UBS can be seen in a branch in Zurich, Switzerland on June 22, 2020. REUTERS / Arnd Wiegmann

Oct. 14 (Reuters) – The United States Commodity Futures Trading Commission on Thursday announced that it had sanctioned banking group UBS AG (UBSG.S) by $ 500,000 for not keeping certain audio recordings for the length of time required by regulations.

“The ordinance finds that due to failures in UBS’s audio preservation systems, the company deleted more than 1,000 hours of audio data within a day, including the voice recording files that were supposed to. be retained for one year by CFTC regulations, ”the CFTC said. in a report. The order requires UBS to pay a civil fine of $ 500,000.

In July 2019, UBS began prematurely deleting, after only one day of retention, files that included voice recordings containing business information about pre-execution swaps that were to be retained for one year, the CFTC said.

He said a UBS technology analyst believed the voice recordings were test files that did not need to be kept and re-designated those files, which reduced the retention period from five years to a day, the CFTC added.

In December 2019, UBS inadvertently learned of the premature deletion of these audio files from its systems. The bank then carried out an internal review. The analyst’s error resulted in the removal of more than 1,000 hours, or about 2.76% of the total volume recorded in the United States, from July 8, 2019 to December 23, 2019.

The deleted files included voice recordings containing information about the pre-execution swaps such as quotes, solicitations, offers, offers, instructions, trades and prices that lead to the execution of the swaps, which must all be kept by CFTC regulations.

After discovering its potential violation of CFTC regulations, UBS promptly reported the violation to the CFTC, the commission said, adding that the bank had cooperated with the investigation.

Report by Kanishka Singh in Bengaluru, edited by Franklin Paul and David Gregorio

Our standards: Thomson Reuters Trust Principles.


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