Deutsche Bank AG (DB Quick QuoteDB - Free Report) entered a settlement with the U.S. Commodity Futures Trading Commission (“CFTC”) over allegations of market manipulation and violations in swap data reporting, resulting in a penalty of more than $10 million.

With respect to the data violations, the Germany-based lender is required to pay $9 million. The penalty reflects a substantially reduced amount due to Deutsche Bank’s cooperation with CFTC staff like consenting to a court-appointed monitor.

The settlement relates to a complaint filed in August 2016, after the bank was unable to report any swap data for multiple asset classes for about five days due to an unusual swap-reporting platform outage. Also, rather than solving the issue, the bank’s efforts increased existing reporting problems and led to the creation of new reporting problems, many of which violated the 2015 order.

Thus, the regulator appointed a monitor, who would help Deutsche Bank in complying with its swap data-reporting obligations. Also, the bank agreed to improve internal control systems.

The second matter relates to spoofing charges, i.e. manipulating the market by placing orders and then canceling. An administrative order has been issued against Deutsche Bank Securities Inc. (“DBSI”) by the commission, stating that two of DBSI’s Tokyo-based traders engaged in spoofing.

Per the order, in 2013, one of the DBSI traders spoofed in the Treasury futures market, while the other spoofed in the Treasury and Eurodollar futures markets. Deutsche Bank agreed to pay a $1.25-million penalty to settle the allegations.

The Justice Department and CFTC are keeping close vigilance on big banks with regard to spoofing-related practices. Notably, other big banks like Bank of America (BAC Quick QuoteBAC - Free Report) , JPMorgan (JPM Quick QuoteJPM - Free Report) and HSBC Holdings (HSBC Quick QuoteHSBC - Free Report) have undergone similar investigations.

Shares of Deutsche Bank have gained 17.1% in the NYSE in the past six months against the 32.4% decline for the industry.

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