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JPMorgan to Pay $650K for Clearing CFTC False-Report Charges

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JPMorgan Chase & Co. (JPM) has reached a $650,000 settlement with the Commodity Futures Trading Commission (:CFTC) to resolve the claims of filing falsified reports on the trading positions of some of its large traders. This settlement clears the bank of the charges made by the U.S. futures and option markets regulator.  

According to CFTC, J.P. Morgan Securities LLC, one of the subsidiaries of JPMorgan, continued to submit inaccurate reports to the agency from 2012 through February of this year, despite repeated notifications regarding numerous errors in the reports. Notably, JPMorgan relied on a third-party vendor for compilation of daily reports on futures and options trading positions.

The Washington, D.C.-based federal regulator uses the reports of the big customers for assessing market risks and to check compliance. Again, many institutions and public rely on the information provided by the CFTC in order to design their trading strategies.

Besides monetary penalty, the federal regulator has ordered the firm to tighten its systems associated with the reports of the large traders.
JPMorgan currently holds a Zacks Rank #3 (Hold). Some better-ranked banks include PrivateBancorp, Inc. (PVTB), Huntington Bancshares Incorporated (HBAN) and Wintrust Financial Corporation (WTFC). All these stocks hold a Zacks Rank #2 (Buy).

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