OCC Clears JPMorgan's $250M Trade Surveillance Order After 2 Years

$348.2 million later, the OCC decided JPMorgan Chase has done enough.\n\nThe Office of the Comptroller of the Currency terminated its March 2024 enforcement action against JPMorgan on March 30, two years after finding the bank failed to surveil billions of instances of trading activity across at least 30 global trading venues. The termination was made public Thursday.\n\nThe original action cited gaps in trading venue coverage and inadequate data controls spanning 2014 to 2023, conduct the OCC called “unsafe or unsound banking practices.” JPMorgan paid $250 million to the OCC and $98.2 million to the Federal Reserve under companion orders, $348.2 million total.\n\nThe OCC’s termination notice said the order’s continued existence isn’t required for safety and soundness. It didn’t give a reason. JPMorgan didn’t comment.\n\nIn a February 2024 filing, the bank said it completed enhancements to its corporate and investment bank venue inventory and data completeness controls. A review of previously unsurveilled data found no employee misconduct and no harm to clients or the market.\n\nJPMorgan first disclosed in November 2023 that it was cooperating with investigations into trade data compliance, acknowledged proposed monetary penalties, and said it expected to pay two regulators while in advanced talks with a third.\n\nThe Fed’s $98.2 million companion order appears to remain in place. That’s the live regulatory constraint JPMorgan’s compliance team is still working against.\n\nMarcus Webb