- JP Morgan Chase has been fined a total of $348.2 million by US regulators, including the Office of the Comptroller of the Currency (OCC) and the US Federal Reserve, over alleged deficiencies in its trade surveillance program.
- The OCC issued a $250 million civil money penalty against the bank, citing failures to surveil billions of instances of trading activity on at least 30 global trading venues, which it deemed as unsafe or unsound banking practices.
- The OCC also issued a cease and desist order requiring JP Morgan Chase to correct the deficiencies, seek the OCC’s approval before onboarding new trading venues, and conduct an independent third-party assessment of its trade surveillance program.
- Separately, the US Federal Reserve fined the bank approximately $98.2 million for an inadequate program to monitor firm and client trading activities for market misconduct between 2014 and 2023.
- JP Morgan Chase spokesperson stated that the issue was self-identified, and significant remedial actions have been taken, with others underway. They clarified that no employee misconduct or harm to clients or the market was found, and no disruption of service to clients is expected as a result of the resolutions.
