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JPMorgan poised to pay $100 million over CFTC trade reporting violations, source says

Published 05/22/2024, 02:59 PM
Updated 05/23/2024, 03:31 PM
© Reuters. FILE PHOTO: A sign outside JP Morgan Chase & Co. offices is seen in New York City, U.S., March 29, 2021.  REUTERS/Brendan McDermid/File Photo
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By Chris Prentice and Nupur Anand

NEW YORK (Reuters) -The U.S. Commodity Futures Trading Commission is expected as soon as Wednesday to announce a $100 million settlement with JPMorgan Chase & Co (NYSE:JPM) over trade reporting lapses, a source with direct knowledge of the matter told Reuters.

The same source said that the bank has also agreed to admit as part of that deal that it broke the agency's rules. That admission, which has not previously been reported, would be a win for the CFTC which has been pushing for companies to assume more accountability for wrongdoing.

A spokesperson for the CFTC declined to comment. A JPMorgan spokesperson declined to comment, but referred to previous statements that the bank self-reported the violation and that it found neither misconduct nor any harm to customers.

JPMorgan previously agreed to pay $348.2 million to U.S. bank regulators over a related issue. The banking regulators said the misconduct occurred between 2014 and 2023 and that JPMorgan failed to properly monitor billions of trades across at least 30 global trading venues.

In a regulatory filing earlier this month, the bank said it would ink another resolution on the matter with a third U.S. regulator, which a source told Reuters at the time was the CFTC.

© Reuters. FILE PHOTO: A sign outside JP Morgan Chase & Co. offices is seen in New York City, U.S., March 29, 2021.  REUTERS/Brendan McDermid/File Photo

The CFTC's enforcement director, which oversees commodity and swap markets, last year detailed new policies for the agency, including an effort to seek admissions of wrongdoing.

Financial firms typically push back against such admissions in both civil and criminal matters, as it can open them up to additional costs from private litigation. But regulators have said they can be an important deterrent of wrongdoing.

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