JPMorgan Chase & Co. failed to properly monitor billions of client orders between 2014 and 2021, according to the Commodity Futures Trading Commission.
The CFTC said Thursday the bank would pay $100 million to settle a multiyear probe into JPMorgan’s trade monitoring, in addition to fines it’s already agreed to pay the Federal Reserve and Office of the Comptroller of the Currency.
In 2021, while on-boarding a new exchange, JPMorgan staff discovered significant gaps in its surveillance of trade data, according to the CFTC. Billions of orders over seven years were not being monitored by the bank across at least 30 trading venues, the regulator said.
In response to a request for comment, a JPMorgan spokesperson pointed to a previous statement by the bank on the issue.
“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,” said the bank’s statement. “We do not expect any disruption of service to clients as a result of these resolutions.”
In the settlement order, JPMorgan indicated that the surveillance gaps were resolved by 2023. The bank admitted to some of the CFTC’s allegations. In addition to the CFTC fine, JPMorgan agreed to hire an independent consultant to review the bank’s trade surveillance and fix any issues they find.
In March, JPMorgan agreed to pay the Fed and OCC a total of more than $300 million to settle their investigations into the matter. As a condition of the OCC settlement, the bank wasn’t allowed to add new trading venues without receiving approval from that regulator.
The new regional leader brings nearly 25 years of experience as the firm seeks to tap a complex and evolving market.
The latest updates to its recordkeeping platform, including a solution originally developed for one large 20,000-advisor client, take aim at the small to medium-sized business space.
David Lau, founder and CEO of DPL Financial Partners, unpacks the tailwinds and trends fueling annuities in the RIA space.
Crypto investor argues the federal agency's probe, upheld by a federal appeals court, would "strip millions of Americans of meaningful privacy protections."
Meanwhile in Chicago, the wirehouse also lost another $454 million team as a group of defectors moved to Wells Fargo.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
