JPMorgan to Pay $350 Million in Civil Penalties for Incomplete Data

In a regulatory filing, JPMorgan Chase and Co. disclosed that it will pay approximately $350 million in civil penalties to regulators for reporting incomplete trading data to surveillance platforms.

Response to Government Inquiries:

In response to government inquiries regarding its trading processes, the bank acknowledged that certain trading and order data within its Corporate and Investment Bank unit were not adequately fed into its trade surveillance platforms.

While JPMorgan clarified that the identified gaps represented only a fraction of the overall activity across the Corporate and Investment Bank (CIB), it emphasized the significance of the data gap on one venue, particularly involving sponsored client access activity.

Absence of Misconduct or Client Harm:

The regulatory filing highlighted that despite the data gaps, JPMorgan has not discovered any employee misconduct or harm to clients or the market.

The bank anticipates that the $350 million penalties will resolve the matter with two U.S. regulators, although it did not specify the agencies involved. Additionally, it mentioned being in advanced negotiations with a third regulator, the outcome of which remains uncertain.