JP Morgan to pay $100m for client order monitoring failures

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According to the order, in 2021, in the course of onboarding a new trading exchange, JP Morgan discovered its surveillance of trading on multiple venues and trading systems was not operating correctly, resulting surveillance gaps.

The problem arose because of a failure to configure certain data feeds to ensure complete trade and order data were being ingested by the Wall Street giant’s surveillance tools. On one specific US designated contract market, the bank failed to ingest into its surveillance systems billions of order messages from 2014 through 2021.

JP Morgan has admitted to some of the CFTC’s charges. The regulator hit the bank with a $200 million penalty but offset $100 million because of previous settlements with the Federal Reserve and the OCC, which earlier this year issued fines totalling more than $300 million.

In a previous statement on the issue, JP Morgan said: “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.”