JPMorgan pays largest CFTC penalty ever of $920 million and admits wrongdoing in market-manipulation case
- JPMorgan agreed to pay the largest Commodity Futures Trading Commission monetary penalty ever and admit wrongdoing to resolve a case over claims of market manipulation in the trading of precious metals and Treasury securities, Bloomberg first reported.
- The case covers eight years and relates to the practice of "spoofing," where traders put in large orders to buy or sell a security with no intention of executing them, creating the appearance of demand or supply for a particular asset.
- JPMorgan will pay $920 million, which includes a $436.4 million fine, $311.7 million in restitution, and $172 million in disgorgement.
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JPMorgan agreed to pay $920 million and admit wrongdoing to resolve a case over claims of market manipulation in the trading of precious metals and Treasury securities, Bloomberg first reported on Tuesday.
The $920 million payment represents the largest monetary penalty imposed by the Commodity Futures Trading Commission and consists of a $436.4 million fine, $311.7 million in restitution, and $172 million in disgorgement, a CFTC statement seen by Bloomberg said.
The case covers eight years and relates to the practice of "spoofing," where traders put in large orders to buy or sell a security with no intention of executing them, creating the appearance of demand or supply for a particular asset and helping move that asset in the trader's desired direction.
It's unlawful to submit and cancel orders in a strategy intended to deceive other traders.
The settlement will end a criminal investigation of the bank that has entangled a half-dozen employees. Two employees have entered guilty pleas, while four employees are facing trial, according to Bloomberg.
JPMorgan traded down as much as 2% on Tuesday.
