The Commodity Futures Trading Commission issued an order simultaneously filing and settling charges against JP Morgan Chase Bank, JP Morgan Securities , and JP Morgan Securities plc (collectively, JPMorgan), for failing to maintain, preserve, and produce records that were required to be kept under CFTC recordkeeping requirements, and failing to diligently supervise matters related to its businesses as CFTC registrants.
The Commodity Futures Trading Commission issued an order simultaneously filing and settling charges against JP Morgan Chase Bank, JP Morgan Securities , and JP Morgan Securities plc (collectively, JPMorgan), for failing to maintain, preserve, and produce records that were required to be kept under CFTC recordkeeping requirements, and failing to diligently supervise matters related to its businesses as CFTC registrants.
The order requires JPMorgan to pay a USD75 million civil monetary penalty, to cease and desist from further violations of recordkeeping and supervision requirements, and to engage in specified remedial undertakings.
JPMorgan admits the facts in the order and acknowledges that the conduct violated the Commodity Exchange Act (CEA) and regulations.
The order finds that since at least July 2015, JPMorgan employees, including those at senior levels, communicated both internally and externally on unapproved channels, including via personal text messages and WhatsApp messages. The order further finds that the widespread use of unauthorised communication methods by JPMorgan’s employees to conduct firm business violated JPMorgan’s own policies and procedures, which prohibited such communications.
