Financial Services Authority, the British financial regulator, fined the London arm of Commerzbank by £595000 over the charges of filing inaccurate daily trading reports for the past two years. FSA said that the bank had either failed to report or provided inaccurate data of its reportable transactions.

FSA also said that it had given repeated reminders to the investment bank but it didn't respond. FSA requires daily reports from all finance houses to detect and investigate insider trading and market manipulation.

"Complete and accurate transaction reports are an essential component of the FSA's market monitoring work. Commerzbank's reporting failures could have a damaging impact on our ability to detect and investigate suspected market abuse," said Alexander Justham, director of markets at the FSA.

The regulator said that 94% of Commerzbank's trades from its London offices were either not reported or reported inaccurately.

However, Commerzbank managed to qualify for a 30% discount on its fine as FAS found it co-operating fully in the course of its investigation and agreed to settle at an early stage. The German investment bank said that it has commissioned a review of its transaction reporting process. The bank also said that it is committing extensive resources to improve its processes and resolve the errors.