Yahoo Finance JPMorgan Expects to Pay $100 Million in a Third Surveillance Case
(Bloomberg) -- JPMorgan Chase & Co., fresh off settling complaints from two regulators over gaps in its trade-surveillance program, expects to pay an additional $100 million to settle a related inquiry from another watchdog.
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The firm disclosed the expected agreement in a filing Wednesday without identifying the regulator. The agency is the Commodity Futures Trading Commission, according to a person familiar the matter.
The biggest US bank agreed in March to pay $250 million to the Office of the Comptroller of the Currency and $98 million to the Federal Reserve to settle their complaints. The OCC faulted JPMorgan’s surveillance program for gaps in its monitoring of venues and data controls.
The deficiencies meant the firm failed to “surveil billions of instances of trading activity on at least 30 global trading venues,” the regulator said at the time.
JPMorgan didn’t admit or deny those findings.
The bank expects to pay $100 million in its anticipated settlement after “offsets” for amounts paid to the OCC and Fed. A representative for the CFTC declined to comment.
Read more: JPMorgan Fined $348 Million for Gaps in Trading Surveillance
“The identified gaps represent a fraction of the overall activity” conducted by JPMorgan’s Wall Street operations, but the data gap for one venue was “significant,” the bank wrote in its filing. “The firm is dedicated to maintaining rigorous controls and continuously enhancing the reliability of its trade infrastructure.”
The company doesn’t expect the settlements to disrupt any services to clients.
(Updates with background on prior sanctions, response from CFTC and quote from bank’s filing from the third paragraph.)
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