On 12 May 2023 the CFTC ordered HSBC Bank USA N.A. to pay a $45 million civil penalty for swaps manipulation, spoofing, and supervision and recordkeeping failures. The CFTC said that from September 2015 to April 2016 the trader who supervised HSBC’s US dollar swap desk engaged in spoofing in the voice-brokered swaps market on a number of occasions.
In a separate order, HSBC Bank USA, HSBC Securities (USA) and the UK’s HSBC Bank plc were ordered to pay $30 million for admitted failures to keep employees’ business communications on personal text and WhatsApp messages. Reuters reported the combined CFTC penalties as $75 million.
The SEC separately fined HSBC-affiliated entities $15 million for similar recordkeeping failures. It said employees often discussed securities business “off-channel” on personal devices, using platforms such as WhatsApp.
HSBC’s position
The CFTC recognised HSBC’s substantial cooperation and remediation, which reduced the penalty.
The evidence
4 sources- Exhibit ACFTC Orders HSBC Bank USA, N.A. to Pay a $45 Million Penalty (Release 8702-23)Commodity Futures Trading Commission · 12 May 2023 · cftc.govOfficial record
- Exhibit BStatement of Commissioner Kristin N. Johnson regarding CFTC orders against HSBCCommodity Futures Trading Commission · 12 May 2023 · cftc.govOfficial record
- Exhibit CHSBC to pay $75 million in penalties to settle U.S. CFTC chargesReuters via Kitco · 12 May 2023 · kitco.com
- Exhibit DHSBC and Scotia Capital charged by SEC for off-channel communication recordkeeping failuresThe TRADE · May 2023 · thetradenews.com
Last checked 2 November 2026. Something wrong or out of date? Tell us and we’ll correct it.