JP Morgan will pay $100 million to settle a CFTC investigation that concluded the bank failed to properly monitor billions of customer orders between 2014 and 2021.
According to the order, in 2021, in the course of launching a new trading exchange, JP Morgan discovered that monitoring of trading on several trading venues and trading systems was not functioning properly, resulting in monitoring gaps.
The problem arose because certain data feeds were not configured to ensure complete trade and order data was captured by the Wall Street giant’s monitoring tools. In one particular U.S. contract market, the bank failed to incorporate billions of contract messages into its monitoring systems from 2014 to 2021.
JP Morgan has admitted to some of the CFTC’s allegations. The regulator fined the bank $200 million, but discounted $100 million based on previous settlements with the Federal Reserve and the OCC, which earlier this year totaled more than $300 million in fines -dollars had imposed.
In a previous statement on the matter, JP Morgan said: “We have self-identified the issue, significant remedial action has been taken and further action is underway; and we did not find any misconduct by employees or harm to customers or the market during our review of the data not previously collected.”
