On March 14, 2024, the Office of the Comptroller of the Currency (OCC) fined JPMorgan Chase Bank for deficiencies in its trade surveillance program.
The violations leading to the fine encompass:
• Since at least 2019, the Bank’s trade surveillance program has operated with certain deficiencies that have compromised its effectiveness.
• The Bank has failed to establish adequate governance overactive trading venues. Trading venues are systems or electronic platforms operated by investment firms or market operators that bring together multiple third-party buying or selling interests in financial instruments to perform a transaction.
• Trade surveillance programs have coverage gaps and lack necessary data controls, resulting in failure to monitor billions of trades across 30 global venues.
• The Bank has engaged in unsafe or unsound practices that constitute a pattern.
The OCC issued a cease and desisted order to JPMorgan Chase, mandating extensive corrective actions to enhance its trade surveillance program. This includes rectifying deficiencies, obtaining OCC approval before adding new trading venues, and commissioning an independent assessment of the program.
