Banks Fail to Meet Trading Data Standards, Global Regulators Say

The world’s biggest banks must give a better account of what financial products they trade and who they trade them with, a group of global regulators said today.

About a third of banks surveyed failed to produce weekly trading reports that met regulatory standards, according to a report from the Senior Supervisors Group. Banks in the European Union “still struggled to meet the standards,” while Canadian lenders “led all peers” the group said.

Regulators must “commit to impressing upon firms the importance of being able to quickly and accurately aggregate top counterparty exposures,” the group, comprised of regulators from countries including the U.S., Switzerland and Japan, said in a letter to Mark Carney, who chairs the Basel-based Financial Stability Board.

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Nineteen banks, including Deutsche Bank A.G, Barclays Plc. and Goldman Sachs Group Inc., took part in the survey which measured their ability to report trades within three days. Regulators have sought better information from banks on their trading activities since the collapse of Lehman Brothers Holdings Inc. led to a financial crisis in 2008.

“If firms cannot produce accurate data during relatively benign times, they would be unlikely to do so during periods of market stress when exposures could be volatile and resources are operating under high-pressure conditions,” the group said in the report.

To contact the reporter on this story: Ben Moshinsky in London at bmoshinsky@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net

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