JPMorgan agrees $100m settlement over trade reporting gaps

JPMorgan Chase on Wednesday said that it will pay an additional $100 million to US regulators to settle trade reporting gaps.

The bank had already to pay penalties of around $350 million for reporting incomplete trading data to surveillance platforms.

In a regulatory filing, the US bank said that it 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. It said that it had self-identified that certain trading and order data through its Corporate & Investment Bank was not feeding into its trade surveillance platforms.

The bank added that it has completed enhancements to the unit’s venue inventory and data completeness controls and that it has also performed a review of the data not originally surveyed.

JPMorgan said that while the 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 the fallout from this data reporting error, the bank entered into resolutions with the Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve that requires it to pay aggregate civil penalties of approximately $350 million. It also has agreed to engage with an independent consultant.

In the filing, the firm said that it was expecting to enter into an additional resolution with a third regulator that would see it pay a civil penalty of $100 million after offsets for amounts paid to the OCC and FRB.

The bank said it does not expect any disruption of service to clients as a result of these resolutions.

Elsewhere in the regulatory filing, the company said that its assets in Russia may be seized after lawsuits in both Russia and in the US.

It said: “If the claims are enforced despite the actions taken by the firm to challenge the claims and orders and to seek the proper application of law, the firm’s assets in Russia could be seized in full or the firm could be prevented from complying with its obligations.”



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