Summary
JPMorgan Chase & Co. (JPM) filed an 8-K on October 16, 2013, to report on a consent order entered into by its subsidiary, JPMorgan Chase Bank, N.A., with the Commodity Futures Trading Commission (CFTC). This order resolves the CFTC's investigation into specific credit default swap index trading activities conducted by former London-based traders within the firm's Chief Investment Office (CIO). As part of the settlement, JPMorgan Chase Bank agreed to pay a $100 million civil money penalty. The bank will also continue to implement enhancements to its control and supervision systems related to swaps trading activities. This action stems from alleged violations concerning CIO trading on February 29, 2012, in a particular credit default swap index. This development follows earlier settlements with other regulatory bodies regarding CIO-related matters.
Key Highlights
- 1JPMorgan Chase Bank, N.A. entered into a consent order with the Commodity Futures Trading Commission (CFTC).
- 2The consent order resolves the CFTC's investigation into credit default swap index trading by former London-based traders in the Chief Investment Office (CIO).
- 3JPMorgan Chase Bank agreed to pay a $100 million civil money penalty to the CFTC.
- 4The firm will continue implementing enhancements to its control and supervision systems for swaps trading.
- 5The CFTC's action is based on alleged violations concerning CIO trading on February 29, 2012, in a specific credit default swap index.
- 6This filing follows previous settlements of other CIO-related matters with the SEC, Federal Reserve, OCC, and UK FCA.
- 7Certain litigation and government investigations related to the CIO, including with the DOJ and Massachusetts Securities Division, remain ongoing.