HSBC has agreed to pay a $75 million settlement to the US Commodity Futures Trading Commission (CFTC) over charges related to manipulative and deceptive trading along with record-keeping failures at the bank.
The charges were levelled against three units of the bank: HSBC Bank USA, HSBC Bank Plc, and HSBC Securities. The regulator said that the three units admitted to charges related to record-keeping and supervision failures, agreeing to pay $30 million.
The bank’s US business meanwhile will pay an additional $45 million civil penalty for manipulative and deceptive trading in interest rate swaps and other financial products. The CFTC said that the charges were in connection with swaps, spoofing and record-keeping failures.
The CFTC’s order, which covers the period of March 2012 to April 2016, also found that in some instances bank supervisors were aware of the conduct with a senior manager directing the wrongdoing in one case.
HSBC did not admit or deny the charges. In comments to Reuters, a spokesperson for the bank said: "In recent years, we have made significant investments in enhancing our compliance procedures and have worked diligently to maintain the highest standards for professional conduct throughout our organisation.”
The news comes after HSBC was charged by the US Securities and Exchange Commission (SEC) for failing to stop staff from using their personal devices and third-party messenger apps like WhatsApp for work purposes. The bank agreed to a $15 million settlement.
Canada’s Bank of Nova Scotia was also charged with the same offence, and agreed to a $7.5 million fine.
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