JP Morgan will pay $100 million to settle a CFTC investigation that found the bank did not adequately monitor billions of client orders from 2014 to 2021.
The order revealed that, during the onboarding of a new trading exchange in 2021, JP Morgan discovered issues with its surveillance systems across multiple trading venues. Specifically, certain data feeds were not properly configured, leading to surveillance gaps. As a result, the bank failed to process billions of order messages from a specific US designated contract market during the specified period.
JP Morgan has acknowledged some of the CFTC’s charges. Although the regulator initially imposed a $200 million penalty, this was reduced by $100 million due to previous settlements with the Federal Reserve and the OCC, which collectively totaled over $300 million in fines earlier this year.
In a prior statement regarding the matter, JP Morgan noted: “We self-identified the issue, significant remedial actions have been taken and others are underway; and we have not found any employee misconduct or harm to clients or the market in our review of the previously uncaptured data.”