- Additional $100 Million Penalty: JP Morgan Chase is set to pay an additional $100 million penalty to an unnamed US regulator over alleged data deficiencies in its trade surveillance program.
- Background: Previously, in March, the bank was fined $348 million following an investigation by the Office of the Comptroller of the Currency (OCC) and the US Federal Reserve Board (FRB), which revealed failures in surveilling billions of instances of trading activity across 30 global trading venues.
- Expected Resolution: According to the bank’s latest quarterly report filed with the Securities and Exchange Commission (SEC), JP Morgan expects to enter into a resolution with a third US regulator. This resolution will include paying a civil penalty of $100 million after offsets for amounts paid to the OCC and FRB.
- Scope of Deficiencies: While the deficiencies in data surveillance represent only a fraction of overall activity across the corporate and investment bank (CIB), one particular venue’s data gap was significant.
- Remediation Efforts: JP Morgan states that it has completed enhancements to the CIB’s venue inventory and data completeness controls as a result of the regulators’ investigation. Additionally, ongoing remediation efforts are underway to address the identified problem areas. The bank has conducted a review of data not originally surveyed, which is nearly complete.
