Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

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

Published 10/14/2021, 10:39 AM
Updated 10/14/2021, 11:41 AM
© Reuters. FILE PHOTO: The logo of Swiss bank UBS is seen at a branch office in Zurich, Switzerland, June 22, 2020. REUTERS/Arnd Wiegmann

© Reuters. FILE PHOTO: The logo of Swiss bank UBS is seen at a branch office in Zurich, Switzerland, June 22, 2020. REUTERS/Arnd Wiegmann

By Kanishka Singh

(Reuters) -The U.S. Commodity Futures Trading Commission said on Thursday it sanctioned banking group UBS AG $500,000 for failing to retain certain audio recordings for the time required under regulations.

"The order finds that as a result of failures in UBS’s audio retention systems, the firm deleted over 1,000 hours of audio data after one day, including voice recording files that were required by CFTC regulations to be retained for one year", the CFTC said in a statement. The order requires UBS to pay a $500,000 civil monetary penalty.

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

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

In December 2019, UBS inadvertently learned about the premature deletion of these audio files from its systems. The bank then did an internal review. The analyst's error resulted in deletion of over 1,000 hours, or roughly 2.76% of total U.S. recorded volume, during July 8, 2019 through Dec. 23, 2019.

© Reuters. FILE PHOTO: The logo of Swiss bank UBS is seen at a branch office in Zurich, Switzerland, June 22, 2020. REUTERS/Arnd Wiegmann

The deleted files included voice recordings containing pre-execution swaps information such as quotes, solicitations, bids, offers, instructions, trading, and prices that lead to the execution of swaps, all of which are required by CFTC regulations to be retained.

Upon discovering its potential violation of CFTC regulations, UBS promptly self-reported this violation to CFTC, the commission said, adding that the bank cooperated in the investigation.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.