JPMorgan Faces $200 Million Charges Over Yet Another Surveillance Oversight Mishap
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The Commodity Futures Trading Commission in the United States has fined a unit of JPMorgan $200 million because it didn’t catch billions of orders in its watching systems from 2014 to 2021. However, it only needs to give $100 million as the company faces another huge fine that it’s clearing.
The CFTC Restrict JPMorgan Securities From Performing Certain Activities
JPMorgan Securities received a penalty for disobeying the rules from the Commodity Futures Trading Commission. They also were commanded to quit doing things that would break the rules again.
The agency said on 23 May that JPMorgan agreed that the request covered the range and reasons for gaps in watching data, but it didn’t agree or deny what they found out. JPMorgan has already ended the fight with the agency and is paying the fine.
The CFTC’s Director of Enforcement, Ian McGinley, revealed that JPMorgan had resolved the issue after paying the charges and maybe admitted some true things. However, the company is bringing in an expert to help fix the problems and ensure they don’t happen again.
McGinley added that the CFTC expects this regulatory issue will serve as a precaution to ensure that those registered under the agency follow the rules. They must provide all trade and order information from exchanges for surveillance, ensuring that all orders are supervised.
JPMorgan Assures Its Clients Of No Major System Challenge
The bank said it found the problem, did important fix-ups, and is still working on more; it didn’t find any employee doing wrong or hurting clients or the market in its previous check of the missed data. JPMorgan thinks clients won’t have any trouble because of these fixes.
The CFTC’s charges came after the Federal Reserve and the OCC, Office of the Comptroller of the Currency, fined JPMorgan. The bank agreed to pay $348 million after both agencies discovered some gaps in JPMorgan’s trade surveillance program. Due to this breach, the bank couldn’t watch over the activities of its customers and employees.
JPMorgan will pay only $100 million of the Commodity Futures Trading Commission’s $200 million fine due to the FC’s $348 million charges.
The US bank offers investment and financial banking services. It provides many investment options that users can choose from. It also enables its users to select from many banking services, such as capital raising in the debt market and equities, Guiding on corporate planning and setup, brokerage and research, and risk management.
