Merrill Lynch Jumps The Gun On Brexit

Turns out the EU’s rules still apply in Blighty for now.
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Paying $45 million instead of being hanged, drawn and quartered.

Last year, the British voted to leave the European Union. The country will not actually do so until the end of March 2019 at the earliest, and will probably have found a way to add 44 years’ worth of European laws to its own statute book by then. But no matter: Merrill Lynch's London operation decided to get a head start and began ignoring the European Markets Infrastructure Regulation in early 2014.

The bank failed to report 68.5 million exchange traded derivative transactions, starting in Feb. 2014, the U.K.’s Financial Conduct Authority said Monday….

A spokeswoman for Bank of America said it had since “re-evaluated and improved” its processes. She said the bank told the FCA as soon as it realized that some trades hadn’t been reported as required under the European Markets Infrastructure Regulation. The incident didn’t have a financial impact on clients, she said.

Merrill Lynch Fined $45 Million by U.K. for Failing to Report Transactions [Bloomberg]

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