UNITED STATES OF AMERICA 

Before the 

COMMODITY FUTURES TRADING COMMISSION 

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In the Matter of: 

Credit Suisse International, Credit Suisse CFTC Docket No. 21-11

Securities Europe Limited, and Credit Suisse 

Capital LLC, 

Respondents. 

ORDER INSTITUTING PROCEEDINGS PURSUANT TO 

SECTION 6(c) AND (d) OF THE COMMODITY EXCHANGE ACT, MAKING 

FINDINGS, AND IMPOSING REMEDIAL SANCTIONS 

I. INTRODUCTION 

The Commodity Futures Trading Commission (“Commission”) has reason to believe that 

since becoming provisionally registered as swap dealers, Credit Suisse International, Credit 

Suisse Securities Europe Limited, and Credit Suisse Capital LLC (collectively “Credit Suisse” or 

“Respondents”), violated Section 2(a)(13)(F) of the Commodity Exchange Act (“Act”), 7 U.S.C. 

§ 2(a)(13)(F) (2018), and Commission Regulation (“Regulation”) 45.4(d)(2), 17 C.F.R. § 

45.4(d)(2) (2020). Therefore, the Commission deems it appropriate and in the public interest 

that public administrative proceedings be, and hereby are, instituted to determine whether 

Respondents engaged in the violations set forth herein and to determine whether any order 

should be issued imposing remedial sanctions. 

In anticipation of the institution of an administrative proceeding, Respondents have 

submitted an Offer of Settlement (“Offer”), which the Commission has determined to accept. 

Without admitting or denying any of the findings or conclusions herein, Respondents consent to 

the entry of this Order Instituting Proceedings Pursuant to Section 6(c) and (d) of the Commodity 

Exchange Act, Making Findings, and Imposing Remedial Sanctions (“Order”) and acknowledge 

service of this Order.1 

Respondents consent to the use of the findings of fact and conclusions of law in this Order in this 

proceeding and in any other proceeding brought by the Commission or to which the Commission is a 

party or claimant, and agree that they shall be taken as true and correct and be given preclusive effect 

therein, without further proof. Respondents do not consent, however, to the use of this Order, or the 

findings or conclusions herein, as the sole basis for any other proceeding brought by the Commission or 

to which the Commission is a party or claimant, other than: a proceeding in bankruptcy or receivership; 

or a proceeding to enforce the terms of this Order. Respondents do not consent to the use of the Offer or 

this Order, or the findings or conclusions in this Order, by any other party in any other proceeding. 

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II. FINDINGS 

The Commission finds the following: 

A. SUMMARY 

Reporting is at the heart of the Commission’s market and financial surveillance 

programs, which are critical to the Commission’s mission to protect market participants and 

promote market integrity, and helps it to fulfill its Congressional mandate of monitoring for 

systemic risk. Accurate swap data is essential to effective fulfillment of the regulatory functions 

of the Commission, including meaningful surveillance and enforcement programs. 

As provisionally-registered swap dealers (“SDs”), Respondents were required to comply 

with certain reporting requirements related to their swap transactions. Since becoming 

provisionally registered SDs, Respondents failed to accurately report certain data to a swap data 

repository (“SDR”) under Part 45 of the Regulations, 17 C.F.R. pt. 45 (2020). Specifically, from 

at least January 10, 20132

 to December 2018 (the “Relevant Period”), one or more Respondents 

submitted inaccurate daily valuation data for the majority of their equity swap transactions. 

B. RESPONDENTS 

Credit Suisse International is a provisionally-registered SD since December 31, 2012, 

based in London, United Kingdom. It is an exempt foreign firm pursuant to Regulation 30.10, 

17 C.F.R. § 30.10 (2020). 

Credit Suisse Securities Europe Limited is a provisionally-registered SD since July 1, 

2013, based in London, United Kingdom. It is an exempt foreign firm pursuant to Regulation 

30.10. 

Credit Suisse Capital LLC is a provisionally-registered SD since August 15, 2017, 

based in New York City. 

C. FACTS 

As provisionally-registered SDs, Respondents are reporting counterparties pursuant to the 

Act and Regulations, and thus are required to report certain data relating to swap transactions, 

including the accurate daily value of the swap, to an SDR. However, during the Relevant Period, 

one or more Respondents inaccurately reported particular swap data under Part 45 of the 

The Regulation at issue, Regulation 45.4(d)(2), discussed in greater detail in Section III infra of 

this Order, became effective on March 13, 2012. With respect to the reporting of equity swaps, all SDs, 

including Respondent Credit Suisse International, were required to comply with the Rule as of January 

10, 2013. See Q&A: On Start of Swap Data Reporting (October 12, 2012), at 

http://www.cftc.gov/LawRegulation/DoddFrankAct/startreporting_qa_final. As noted in Section II.B 

infra, Respondents Credit Suisse Securities Europe Limited and Credit Suisse Capital LLC subsequently 

registered as SDs after January 10, 2013, and were required to comply with Regulation 45.4(d)(2) as of 

their registration date. 

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Regulations. Specifically, when reporting certain equity swap transactions to the SDR, 

Respondents failed to comply with the requirement that they report the “daily mark” of these 

swap transactions. Instead, Respondents reported the mark-to-market notional value of the 

underlying equity. This valuation reporting error impacted approximately 91 percent of 

Respondents’ reportable equity swap positions, and 14 percent of their overall reportable swaps, 

during the Relevant Period. This reporting error, which was caused by a single issue in the 

reporting engine used by Respondents, also impacted approximately 22 million messages to the 

SDR. 

Respondents discovered the reporting error in October 2018. Respondents have 

represented that they remediated the reporting error by mid-December 2018, and that their 

reporting of the daily valuation field for equity swaps was accurate from that date onward. 

Respondents have further represented that they corrected the historical record of all inaccurate 

reports by August 18, 2020. 

III. LEGAL DISCUSSION 

The Act states that, with regard to real-time data, “[p]arties to a swap . . . shall be 

responsible for reporting swap transaction information to the appropriate registered entity in a 

timely manner as may be prescribed by the Commission.” Section 2(a)(13)(F) of the Act, 

7 U.S.C. § 2(a)(13)(F) (2018). Regulation 45.4(d)(2) requires that “valuation data for a swap 

must be reported by” an SD to an SDR on a “daily” basis. 17 C.F.R. § 45.4(d)(2) (2020).3 

Regulation 45.1 defines “[v]aluation data” as “all of the data elements necessary to fully 

describe the daily mark of the transaction ...” 17 C.F.R. § 45.1 (2020).4

 In this case, 

Respondents failed to report the “daily mark” for certain identified equity swaps transactions. 

“The accuracy and completeness of swap reporting are critical to the Commission’s 

mission to protect market participants and to ensure market integrity.” U.S. Commodity Futures 

Trading Comm’n v. Deutsche Bank AG, No. 1:16-cv-6544 (WHP), 2020 WL 4611985, at *8 

(S.D.N.Y. June 17, 2020) (consent order) (citing In re Société Généralé Int’l Ltd., CFTC No. 

19-38, 2019 WL 4915485, at *6 (Sept. 30, 2019) (consent order) (collecting cases). The 

Commission requires complete and accurate reporting data to engage in meaningful oversight of 

the swaps market. Id. 

As set forth above, Respondents failed to accurately report certain swap data. As a 

result, Respondents violated Section 2(a)(13)(F) of the Act and Regulation 45.4(d)(2). 

3 The conduct at issue took place before recent amendments to Part 45 of Commission Regulations. 

See Swap Data Recordkeeping and Reporting Requirements, 85 Fed. Reg. 75,503, 75,561-62, 75559 

(Nov. 25, 2020) (to be codified at 17 C.F.R. pt. 45, 46, 49) also amended at Certain Swap Data 

Repository and Data Reporting Requirements, 85 Fed. Reg. 75601, 75,654 (Nov. 25, 2020) (to be 

codified at 17 C.F.R. pt. 43, 45, 49). However, those amendments do not change substantively the 

reporting requirements for valuation data. 

4 Valuation data is a “primary economic term” that is included in the Commission’s list “of 

minimum primary terms for swaps in each swap asset class.” Regulation 45.1 (defining “primary 

economic term”); Appendix 1 to Part 45 (identifying valuation data as a primary economic term). 

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IV. FINDINGS OF VIOLATIONS 

Based on the foregoing, the Commission finds that Respondents violated Section 

2(a)(13)(F) of the Act, 7 U.S.C. § 2(a)(13)(F) (2018), and Regulation 45.4(d)(2), 17 C.F.R. 

§ 45.4 (2020). 

V. OFFER OF SETTLEMENT 

Respondents have submitted an Offer in which they, without admitting or denying the 

findings and conclusions herein: 

A. Acknowledge service of this Order; 

B. Admit the jurisdiction of the Commission with respect to all matters set forth in this 

Order and for any action or proceeding brought or authorized by the Commission based 

on violation of or enforcement of this Order; 

C. Waive: 

1. The filing and service of a complaint and notice of hearing; 

2. A hearing; 

3. All post-hearing procedures; 

4. Judicial review by any court; 

5. Any and all objections to the participation by any member of the Commission’s 

staff in the Commission’s consideration of the Offer; 

6. Any and all claims that they may possess under the Equal Access to Justice Act, 

5 U.S.C. § 504 (2018), and 28 U.S.C. § 2412 (2018), and/or the rules promulgated 

by the Commission in conformity therewith, Part 148 of the Regulations, 17 C.F.R. 

pt. 148 (2020), relating to, or arising from, this proceeding; 

7. Any and all claims that they may possess under the Small Business Regulatory 

Enforcement Fairness Act of 1996, Pub. L. No. 104-121, tit. II, §§ 201–253, 110 

Stat. 847, 857–74 (codified as amended at 28 U.S.C. § 2412 and in scattered 

sections of 5 U.S.C. and 15 U.S.C.), relating to, or arising from, this proceeding; 

and 

8. Any claims of Double Jeopardy based on the institution of this proceeding or the 

entry in this proceeding of any order imposing a civil monetary penalty or any 

other relief, including this Order; 

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D. Stipulate that the record basis on which this Order is entered shall consist solely of the 

findings contained in this Order to which Respondents have consented in the Offer; and 

E. Consent, solely on the basis of the Offer, to the Commission’s entry of this Order that: 

1. Makes findings by the Commission that Respondent violated Section 2(a)(13)(F) 

of the Act, 7 U.S.C. §§ 2(a)(13)(F) (2018), and Regulation 45.4(d)(2), 17 C.F.R. § 

45.4(d)(2) (2020). 

2. Orders Respondents to cease and desist from violating Section 2(a)(13)(F) of the 

Act and Regulation 45.4(d)(2). 

3. Orders Respondents to pay a civil monetary penalty in the amount of one million 

five hundred thousand dollars ($1,500,000), plus any post-judgment interest; and 

4. Orders Respondents and their successors and assigns to comply with the conditions 

consented to in the Offer and as set forth in Part VI of this Order. 

Upon consideration, the Commission has determined to accept the Offer. 

VI. ORDER 

Accordingly, IT IS HEREBY ORDERED THAT: 

A. Respondents shall cease and desist from violating Section 2(a)(13)(F) of the Act, 7 

U.S.C. §§ 2(a)(13)(F) (2018), and Regulation 45.4(d)(2), 17 C.F.R. § 45.4(d)(2) (2020). 

B. Respondents shall pay, jointly and severally, a civil monetary penalty in the amount of 

one million five hundred thousand dollars ($1,500,000) (“CMP Obligation”) within ten 

days of the date of entry of this Order. If the CMP Obligation is not paid in full within 

ten days of the date of entry of this Order, then post-judgment interest shall accrue on the 

CMP Obligation beginning on the date of entry of this Order and shall be determined by 

using the Treasury Bill rate prevailing on the date of entry of this Order pursuant to 28 

U.S.C. § 1961 (2018). 

Respondents shall pay the CMP Obligation and any post-judgment interest by electronic 

funds transfer, U.S. postal money order, certified check, bank cashier’s check, or bank 

money order. If payment is to be made other than by electronic funds transfer, then the 

payment shall be made payable to the Commodity Futures Trading Commission and sent 

to the address below: 

MMAC/ESC/AMK326 

Commodity Futures Trading Commission 

Division of Enforcement 

6500 S. MacArthur Blvd. 

HQ Room 181 

Oklahoma City, OK 73169 

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(405) 954-6569 office 

(405) 954-1620 fax 

9-AMC-AR-CFTC@faa.gov 

If payment is to be made by electronic funds transfer, Respondents shall contact Marie 

Thorne or her successor at the above address to receive payment instructions and shall 

fully comply with those instructions. Respondents shall accompany payment of the CMP 

Obligation with a cover letter that identifies the paying Respondents and the name and 

docket number of this proceeding. The paying Respondents shall simultaneously 

transmit copies of the cover letter and the form of payment to the Chief Financial Officer, 

Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW, 

Washington, D.C. 20581. 

C. Respondents and their successors and assigns shall comply with the following conditions 

and undertakings set forth in the Offer: 

1. Public Statements: Respondents agree that neither they nor any of their 

successors and assigns, agents, or employees under their authority or control shall 

take any action or make any public statement denying, directly or indirectly, any 

findings or conclusions in this Order or creating, or tending to create, the 

impression that this Order is without a factual basis; provided, however, that 

nothing in this provision shall affect Respondents’: (i) testimonial obligations; or 

(ii) right to take legal positions in other proceedings to which the Commission is 

not a party. Respondents and their successors and assigns shall comply with this 

agreement, and shall undertake all steps necessary to ensure that all of their agents 

and/or employees under their authority or control understand and comply with 

this agreement. 

2. Cooperation with the Commission: Respondents understand and agree that they 

shall cooperate fully and expeditiously with the Commission, including the 

Commission’s Division of Enforcement in this action, and any current or future 

Commission investigations or actions related thereto. Respondents shall also 

cooperate in any investigation, civil litigation, or administrative matter related to, 

or arising from, the subject matter of this action 

3. Partial Satisfaction: Respondents understand and agree that any acceptance by 

the Commission of any partial payment of Respondents’ CMP Obligation shall 

not be deemed a waiver of its obligation to make further payments pursuant to this 

Order, or a waiver of the Commission’s right to seek to compel payment of any 

remaining balance. 

4. Change of Address/Phone: Until such time as Respondents satisfy in full their 

CMP Obligation as set forth in this Order, Respondents shall provide written 

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notice to the Commission by certified mail of any change to its telephone number 

and mailing address within ten calendar days of the change. 

The provisions of this Order shall be effective as of this date. 

By the Commission. 

01¥ 1-,)cf#b 

Christopher J. Kirkpatrick 

Secretary of the Commission 

Commodity Futures Trading Commission 

Dated: June 25, 2021 

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