JP Morgan Chase to pay additional $100m penalty to US regulator over trade surveillance data gaps
JP Morgan Chase is to pay an additional $100 million penalty to an unnamed US regulator over alleged data deficiencies in its trade surveillance programme.
JP Morgan Chase fined additional $100m over trade surveillance
The bank was previously hit with a $348 million fine in March after a coordinated investigation conducted by the Office of the Comptroller of the Currency (OCC) and the US Federal Reserve Board (FRB) discovered it had “failed to surveil billions of instances of trading activity on at least 30 global trading venues”.
Now, as per the filing of its latest quarterly report with the Securities and Exchange Commission (SEC), the bank “expects to enter into a resolution with a third US regulator that will require the firm to, among other things, pay a civil penalty of $100 million after offsets for amounts paid to the OCC and FRB”.
The filing adds that although the gaps present in the data being fed into its trade surveillance platforms represent “a fraction of the overall activity across the corporate and investment bank (CIB)”, a data gap identified in one particular venue “was significant”.
To rectify the identified problem areas, JP Morgan says it has “completed enhancements to the CIB’s venue inventory and data completeness controls” as a result of the regulators’ investigation, while “other remediation is underway”.
It adds that a review of data not originally surveilled has been performed and is “nearly complete”.
The bank was contacted by FinTech Futures for comment.
