JP Morgan Chase has confirmed in its SEC filings quarterly report released yesterday, 1 May, that the latest development with respect to its trading venues investigations include an expected $100 million civil penalty related to the completeness of its trading data.
Specifically, JP Morgan Chase stated that “the firm has been responding to government inquiries regarding its processes to inventory trading venues and confirm the completeness of certain data fed to trade surveillance platforms”.
The report stated that the firm expects to enter into a resolution with an as yet unnamed third US regulator which is set to include a $100 million civil penalty.
Prior to this, in March 2024, JP Morgan Chase entered into resolutions with the Office of the Comptroller of the Currency (OCC) and the board of governors of the FRB regarding which saw the firm receive aggregate civil penalties of approximately $350 million.
The most recent expected $100 million civil penalty will be addressed after offsets for amounts paid to OCC and FRB.
The $98.2 million fine and $250 million civil money penalty, issued on 14 March, were specifically related to inadequacies in its firm and client trade reporting program between 2014 and 2023.
The OCC’s civil penalty related to gaps in trading venue coverage and inadequate data controls implemented by JP Morgan Chase to effectively operate its trade surveillance program. The OCC ordered the bank to correct the deficiencies before onboarding new trading venues.
In its findings, the OCC concluded that JP Morgan Chase failed to surveil “billions of instances of trading activity” across at least 30 trading venues globally.
The FRB’s additional enforcement action of $98.2 million also related to the same issue and was taken in coordination with the OCC.