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

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October 14 (Businesshala) – The US Commodity Futures Trading Commission said on Thursday it has sanctioned $500,000 to banking conglomerate UBS AG (UBSG.S) for failing to retain certain audio recordings for the time required under regulations.

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The CFTC said, “The order found that as a result of a failure in UBS’s audio retention system, the firm deleted more than 1,000 hours of audio data after one day, including voice recording files, which were required to be assigned a license by CFTC regulations.” was required to be maintained for the year”, the CFTC said. in a statement. The order requires UBS to pay a $500,000 civil monetary penalty.

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The CFTC said that as of July 2019, UBS began prematurely deleting after only one day of retention, including voice recordings containing pre-execution swap trade information, that were required to be retained for one year.

It said a UBS technology analyst believed the voice recordings were test files that did not need to be retained and rechristened those files, resetting the retention period from five years to one day. are, the CFTC said.

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In December 2019, UBS became aware of inadvertently premature removal of these audio files from its system. Thereafter the bank conducted an internal review. The analyst error resulted in the removal of over 1,000 hours, or approximately 2.76% of the total US recorded volume, from July 8, 2019 to December 23, 2019.

Deleted files include voice recordings containing pre-execution swap information such as quotes, requests, bids, offers, instructions, trades, and prices that lead to the execution of the swap, all of which are required to uphold CFTC regulations. it occurs.

Upon discovering its potential breach of CFTC rules, UBS immediately reported the breach to the CFTC, the commission said, adding that the bank cooperated with the investigation.

Reporting by Kanishk Singh in Bengaluru, Editing by Franklin Paul and David Gregorio

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