After the announcement of a US$350 million penalty earlier this year, following investigations into its provision of incomplete data to trade surveillance platforms, JP Morgan expects to see a further US$100 million fine from a third US regulator.
In March, JP Morgan shared that resolutions had been entered into with the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Bank of New York’s (FRB) Board of Governors on the matter. These require the firm to pay aggregate civil penalties of approximately US$350 million.
In its quarterly SEC report, published 1 May, the firm added that it expects to enter into another resolution with a third US regulator, currently unnamed, to pay a civil penalty of US$100 million after offsets for amounts paid to the OCC and FRB.
The trade surveillance issue was initially identified internally, JP Morgan stated, with certain trading and order data through the CIB not being fed into the requisite trade surveillance platforms. This caused a “significant” data gap on one venue, the firm reported.
As a result, enhancements have been made to the CIB’s venue inventory and data completeness controls, the firm shared. Other remediation strategies are also in place.
In the quarterly report, JP Morgan reassured that “the firm does not expect any disruption of service to clients as a result of these resolutions.”
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