JP Morgan to pay $100 million for transaction control violations
By ForGeeks JP Morgan will pay $100 million to settle a case brought by the CFTC, which concluded that the bank failed to properly monitor billions of customer orders between 2014 and 2021. According to the injunction, in 2021, in the process of connecting a new trading exchange, JP Morgan found that its system for monitoring trading on multiple trading venues and trading systems was not working properly, resulting in gaps in surveillance.
According to the injunction, the CFTC will pay the bank $500 million to settle the case.
The problem arose because some data feeds were not set up to ensure that complete trade and order data flowed into the Wall Street giant’s surveillance tools. In one particular U.S. contract market, the bank failed to enter billions of order messages into its surveillance systems from 2014 through 2021.
The problem was caused by the bank’s failure to set up some data feeds to ensure that billions of orders were entered into its surveillance systems from 2014 through 2021.
JP Morgan has admitted to some of the CFTC’s charges. The regulator fined the bank $200 million, but offset $100 million from previous settlements with the Federal Reserve and the OCC, which earlier this year issued fines totaling more than $300 million.
JP Morgan’s fines totaled more than $300 million.
In an earlier statement on the matter, JP Morgan said: «We independently identified the problem, significant corrective actions have been taken, and other actions are underway; and we did not identify any employee misconduct or harm to customers or the marketplace in our analysis of previously uncaptured data».
And we have not identified any employee misconduct or harm to customers or the marketplace in our analysis of previously uncaptured data.
