On Tuesday, JPMorgan Chase, an American multinational investment bank, approved to pay a record 920 million USD to fix charges that it engaged in manipulative trades for the upcoming days that linked to Treasury bonds and precious metals.
JPMorgan Chase, the largest bank in the United States, has agreed to pay a record $920 million to settle charges that it engaged in manipulative trades of futures tied to precious metals and Treasury bonds https://t.co/9eViv7W2w5
— CNN Business (@CNNBusiness) September 29, 2020
In a statement, the CFTC (Commodity Futures Trading Commission) said that JPM (JPMorgan Chase) was involved in deceptive conduct in at least 8 years that added hundreds of thousands of so-called spoof businesses, orders that were settled and abruptly annulled because those orders were never presented to be implemented and fairly designed to mislead their investors.
Bluffing can deploy markets by representing fake demand for an asset. The activity can ramp up or reduce the prices of assets with respect to the need of the bluffer.
In a statement, James McDonald (CTFC Division of Enforcement Director) said that this activity releases a significant message that if people engage in manipulative and deceptive business practices, they will be punished, caught, and forced to give up their ill-gotten gains.
Manipulating markets will not be tolerated
Heath Tarbert (CFTC Chairman) added that spoofing is illegal, simple, and pure. He added that this record-making enforcement activity depicts the commitment of the CFTC to being tough on those who intentionally break their rules and regulations, no matter who they are. He continued that efforts to manipulate their markets will not be bearable.
In an individual announcement regarding the settlement, the SEC (Securities and Exchange Commission) described that after investors got beneficially priced executions for genuine orders, they promptly annulled the fake orders.
In a statement, the director of SEC’s of Division of Enforcement, Stephanie Avakian, said that JPMorgan Securities damaged the integrity of their markets with this scheme.
In a statement, JPMorgan Chase described that the violations made from 2008 to 2016 emphasized that the dealers no longer operate with the firm.
Co-president of J.P.Morgan Chase and CEO of the company’s Corporate and Investment Bank, Daniel Pinto, said in a statement that the conduct of the separate referenced in today’s resolutions is unacceptable and they are no longer operate with the firm.