JPMorgan Chase disclosed in a regulatory filing it expects to be penalized approximately $350 million by two unnamed U.S. regulators over lapses in its trading surveillance activities.
The firm self-identified “certain trading and order data through the CIB (corporate and investment bank) was not feeding into its trade surveillance platforms,” according to JPMorgan’s latest annual report filed Friday.
As part of an internal investigation, the firm said it nearly completed reviewing data not originally surveilled and, so far, has “not identified any employee misconduct, harm to clients, or the market.”
In brief: JPMorgan Chase has been fined nearly $350 million for deficiencies in its trade surveillance data capture procedures. The action, jointly taken by the OCC and Federal Reserve Board, also includes stipulations for the firm to undertake a comprehensive third-party review of policies.
JPMorgan fined $348M by OCC, Fed over trade surveillance lapses. JPMorgan Chase will pay $348.2 million in fines to settle allegations laid by two federal banking regulators that it failed to adequately monitor trading and order activity.
JPMorgan Penalized Again for Surveillance Failure: $200 Million This Time. The latest penalty has been offset by $100 million with a previous similar order. The company indicated that the surveillance gap had been resolved in 2023.
Trade Surveillance. On 23 May 2024, we saw the conclusion of the CFTC's lengthy investigations into J.P. Morgan Securities' trade surveillance systems, resulting in an eye-watering $200 million fine. Between 2014 to 2021, they failed to capture and surveil billions of order messages due to misconfigured data feeds.
JP Morgan fined almost $350 million for reporting inadequacies across 'billions of instances of trading activity' Office of the Comptroller of the Currency (OCC) is ordering the bank to correct the deficiencies before onboarding new trading venues.
Banks are required to flag suspicious activity and hand over documents to investigators when asked. JPMorgan agreed to pay a combined $348.2 million penalty to its regulators at the Fed and the Office of the Comptroller of the Currency, without admitting or denying the allegations.
The OCC found that JPMC failed to surveil billions of instances of trading activity on at least 30 global trading venues. These gaps and deficiencies in JPMC's trade surveillance program constitute unsafe or unsound banking practices.
JPMorgan Chase & Co has been fined $348.2 million by a pair of U.S. bank regulators over its inadequate program to monitor firm and client trading activities for market misconduct, the Federal Reserve announced on Thursday.
Under the terms of the settlement, J.P. Morgan admitted to compliance and supervision failures from 2014 through 2023; agreed to a civil monetary penalty of $200 million, with up to $100 million to be credited for amounts paid in parallel actions initiated by prudential regulators; and agreed to additional actions, ...
Cybersecurity Risks: Like many financial institutions, JPMorgan faces significant cybersecurity risks. The company's 10-Q filing highlights the potential for operational disruptions due to cyberattacks or other unauthorized attempts to access the company's information or disrupt its systems.
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