Deutsche Bank AG agreed to pay a fine of US$ 650,000 to ICE Futures U.S. related to the bank’s apparent failure to maintain confirmation statements to support the physical legs of exchange for related position transactions involving foreign currency. The alleged documentation lapses occurred on “numerous instances” from September 2011 through December 2013, said IFUS. Deutsche Bank neither admitted nor denied any rule violation.
Compliance Weeds: Last year, IFUS, like CME Group before it, updated its rules related to EFRPs and issued a revised “EFRP FAQs.” Among other matters, IFUS’s rules require each of the parties to an EFRP (regardless of whether they are exchange members) to maintain “all documents customarily generated in accordance with the relevant market practice” in connection with the related position. Many firms have been penalized by CME Group and IFUS for failing to prepare and later produce these required documents.