JPMorgan To Pay US$920mn For Manipulating Markets

The settlement draws a line under a multi-year probe into the country's largest lender and marks a major scalp for US authorities.

The lender will pay the biggest monetary penalty ever imposed by the Commodity Futures Trading Commission (CFTC), including US$436.4 million in fine, US$311.7 million in restitution and more than US$172 million in disgorgement, the statement said.

Disgorgement is a form of restitution that requires companies to return money that has been obtained from a fraudulent scheme.

"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," said CFTC chairman Heath Tarbert.

Spoofing is a practice in which traders place orders they intend to cancel to move prices to benefit their market positions.

"The conduct of the individuals referenced in today's resolutions is unacceptable and they are no longer with the firm," said Daniel Pinto, co-president of JPMorgan.

"We appreciate that the considerable resources we've dedicated to internal controls was recognised by the DOJ, including enhancements to compliance policies, surveillance systems and training programs."

Meanwhile, the Securities and Exchange Commission said the lender would pay US$35 million in fines and disgorgement in relation to the CFTC probe into manipulative trading practices in Treasuries and Treasury securities between 2009 and 2016. (Reuters)