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JPMorgan Chase Agrees to $920 Million Settlement on Market Manipulation Investigations

It's the CFTC's largest ever penalty imposed for a spoofing case.

Image source: JPMorgan Chase

The Commodity Futures Trading Commission (CFTC) announced a settlement with JPMorgan Chase today for manipulative and deceptive conduct and spoofing that spanned at least eight years and involved hundreds of thousands of spoof orders in precious metals and U.S. Treasury futures contracts.

Spoofing is a practice in which traders place orders that they intend to cancel, with the sole objective of moving the market in a favorable direction for their actual desired trades.

JPMorgan will pay a total penalty of $920.2 million—the largest amount of monetary relief ever imposed by the CFTC in any spoofing case:

  • Restitution of $311,737,008
  • Disgorgement of $172,034,790
  • Civil penalty of $436,431,811

Spoofing is illegal—pure and simple. This record-setting enforcement action demonstrates the CFTC’s commitment to being tough on those who intentionally break our rules, no matter who they are. Attempts to manipulate our markets won’t be tolerated. The CFTC will take all steps necessary to investigate and prosecute illegal activities that could ultimately undermine the integrity of the American free enterprise system.

CFTC Chairman Heath P. Tarbert


Source: Equities News

Do Fed bank regulators not at least read about what their monetary policy brethren are doing? Rates have been rising for a year! The regulatory executives who somehow overlooked this should be asked to polish their resumes and seek other pastures.