JPMorgan pays largest CFTC penalty ever of $920 million and admits wrongdoing in market-manipulation case
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Matthew Fox
Sep 29, 2020, 23:02 IST
Amr Alfiky/Reuters
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.
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.
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