HSBC Agrees to Pay $75 Million Fine Related to Deceptive Trading Practices and Record-Keeping Failures

Several of HSBC’s units agreed to settle charges brought by the Commodity Futures Trading Commission over engaging in manipulative and deceptive trading practices and failing to maintain adequate record-keeping controls.

The CFTC on Friday announced HSBC Bank USA agreed to a $45 million civil fine after engaging in deceptive and manipulative trading related to record-keeping failures, swaps, and spoofing. Meanwhile, along with the bank’s US unit, HSBC Bank Plc and HSBC Securities are also settling a $30 million fine after admitting to supervision and record-keeping violations, regulators announced in a separate statement.

Although HSBC didn’t admit to any wrongdoing, CFTC regulators discovered the financial institution committed the alleged violations between March 2012 and July 2020. The bank was also slapped with a separate $15 million fine after the SEC discovered employees and upper management were using “off-channel” messaging platforms such as WhatsApp to discuss business matters whilst failing to maintain adequate record-keeping controls.

Information for this briefing was found via the CFTC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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