The Financial Industry Regulatory Authority has fined Deutsche Bank Securities $6 million for failing to provide complete and accurate trade data to both it and the Securities and Exchange Commission from 2008 to 2015.
The regulatory group says that Deutsche Bank “experienced significant failures with its blue sheet systems,” such as programming errors, and it failed to make improvements to meet regulatory reporting rules. As a result, the firm submitted “thousands of blue sheets to regulators that misreported or omitted critical information on over 1 million trades,” FINRA said in a press release.
Also, FINRA found that a large number of Deutsche Bank’s blue sheet submissions did not meet regulatory deadlines, which typically are 10 business days after a blue sheet request. Between January 2014 and August 2015, for instance, about 40% of Deutsche Bank’s blue sheets were filed after the deadline, while from July to August 2015, more than 90% of Deutsche Bank’s blue sheets were not submitted to FINRA on a timely basis.
Deutsche Bank neither admitted nor denied the charges but agreed to retain an independent consultant to improve its policies, systems and procedures related to blue sheet submissions, the regulatory group says. (Deutsche Bank declined to comment on the matter.)