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Sanction details

Sanction

Sanction legal framework
EMIR
Member state
UNITED KINGDOM
Sanctioning authority
Financial Conduct Authority (FCA)
Sanction nature
EMIR Penalty
Sanction date
18/10/2017
Sanction expiration date
Sanctioned entity name
Merrill Lynch International
Sanctioned entity legal framework
Sanctioned entity LEI
GGDZP1UYGU9STUHRDP48
Free Text 1 (English)
Merrill Lynch International (MLI) has been fined £34,524,000 by the Financial Conduct Authority (FCA) for failing to report 68.5 million exchange traded derivative transactions between 12 February 2014 and 6 February 2016. This is the first enforcement action against a firm for failing to report details of trading in exchange traded derivatives, under the European Markets Infrastructure Regulation (EMIR), and reflects the importance the FCA puts on this type of reporting. Reporting exchange traded derivative transactions helps authorities assess and address the risk inherent in financial systems caused by a lack of transparency. The reporting requirement was one of the key reforms introduced following the financial crisis in 2008 to improve transparency within financial markets. While MLI were open and co-operative in assisting in the FCA’s investigation and quickly took steps to remediate the breach, MLI were the subject of two earlier and related transaction reporting cases. Mark Steward, FCA Executive Director of Enforcement and Market Oversight said: "Effective market oversight depends on accurate and timely reporting of transactions. The obligations under EMIR, as with MiFID, are key aspects of such oversight. “It is vital that reporting firms ensure their transaction reporting systems are tested as fit for purpose, adequately resourced and perform properly. There needs to be a line in the sand. We will continue to take appropriate action against any firm that fails to meet requirements.” MLI agreed to settle at an early stage of the investigation and received a 30% reduction in their overall fine. Without this discount the fine would have been £49,320,000.
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Free Text 2 (English)
Link to final notice: https://www.fca.org.uk/publication/final-notices/merrill-lynch-international-2017.pdf
viewDetails
Last update
07/09/2018
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Last update: 09/05/2020, 14:42:28

Merrill Lynch International (MLI) has been fined £34,524,000 by the Financial Conduct Authority (FCA) for failing to report 68.5 million exchange traded derivative transactions between 12 February 2014 and 6 February 2016. This is the first enforcement action against a firm for failing to report details of trading in exchange traded derivatives, under the European Markets Infrastructure Regulation (EMIR), and reflects the importance the FCA puts on this type of reporting. Reporting exchange traded derivative transactions helps authorities assess and address the risk inherent in financial systems caused by a lack of transparency. The reporting requirement was one of the key reforms introduced following the financial crisis in 2008 to improve transparency within financial markets. While MLI were open and co-operative in assisting in the FCA’s investigation and quickly took steps to remediate the breach, MLI were the subject of two earlier and related transaction reporting cases. Mark Steward, FCA Executive Director of Enforcement and Market Oversight said: "Effective market oversight depends on accurate and timely reporting of transactions. The obligations under EMIR, as with MiFID, are key aspects of such oversight. “It is vital that reporting firms ensure their transaction reporting systems are tested as fit for purpose, adequately resourced and perform properly. There needs to be a line in the sand. We will continue to take appropriate action against any firm that fails to meet requirements.” MLI agreed to settle at an early stage of the investigation and received a 30% reduction in their overall fine. Without this discount the fine would have been £49,320,000.

Link to final notice: https://www.fca.org.uk/publication/final-notices/merrill-lynch-international-2017.pdf

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