JPMorgan Chase, in its regulatory filing, said that certain trading and order data through its Corporate and Investment Bank business was not recorded in its trade surveillance platforms, and the company intends to enhance the reliability of its trade infrastructure
JPMorgan to pay $350m in civil penalty to US regulators. (Credit: IKECHUKWU JULIUS UGWU on Unsplash)
US-based investment banking company JPMorgan Chase has agreed to pay around $350m in civil penalties to regulators for reporting incomplete trading data to surveillance platforms.
JPMorgan Chase, in its regulatory filing, said that certain trading and order data through its Corporate and Investment Bank (CIB) unit was not recorded in its trade surveillance platforms.
The company 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.
JPMorgan Chase intends to maintain rigorous controls and continuously enhance the reliability of its trade infrastructure.
The company will resolve the issue with two US regulators by completing its remediation, which includes civil penalties of around $350m, and engaging an independent consultant.
JPMorgan Chase in its filing said: “The Firm has completed enhancements to the CIB’s venue inventory and data completeness controls, and other remediation is underway.
“The Firm has also performed a review of the data not originally surveilled, which is nearly complete, and has not identified any employee misconduct, harm to clients or the market.
“While the identified gaps represent a fraction of the overall activity across the CIB, the data gap on one venue, which largely consisted of sponsored client access activity, was significant.”
In 2016, JPMorgan Chase agreed to pay $48m to settle mortgage servicing-related issues with the Office of the Comptroller of the Currency (OCC), a division of the US Treasury.
OCC found that the bank violated the 2011 consent order related to mortgage servicing between 1 October 2014 and 30 June 2015.
From December 2011 to November 2013, JPMorgan’s payment change notices in bankruptcy court did not comply with bankruptcy rules and were unsafe banking practices.
OCC has also fined EverBank for improperly charging fees related to mortgage electronic registration system assignments, property inspections, and late fees to nearly 47,000 borrowers.