JPMorgan Fined $30 Million by SFC for Dark Pool Failings

- By John Brazier
- @brazier_john
- 16 Dec 2015

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

Alongside failure to implement adequate systems and controls for client facilitation and principal trading business, and short selling activities, JPMorgan Broking (Hong Kong), JPMorgan Securities (Asia Pacific) and JPMorgan Securities (Far East) were reprimanded and fined $15 million, $12 million, and $3 million, respectively, by the SFC for breaching regulations aorund its dark pool systems implementation.

The Hong Kong regulator found that following the authorization of JPMorgan's dark pool venue JPMX to begin activity as a pure agency-to-agency matching platform, "numerous principal orders of JPMorgan were incorrectly routed into the agency pool of JPMX for matching between March and July 2012 due to human and systems errors," with none of the orders crossed in JPMX.

JPMorgan is the latest firm to fall foul of wider regulations governing the activity of dark pool venues in Hong Kong, after BNP Paribas received a $15 million fine in August after failing to give priority to highly priced orders as had originally been claimed by the French bank.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe

You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.

You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.

As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.

If you would like to purchase additional rights please email info@waterstechnology.com

You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.

If you would like to purchase additional rights please email info@waterstechnology.com

More on Regulation

New data granularity rules create opportunities for regtech providers

As evidence, Regnology increased its presence in North America with the addition of Vermeg's Agile business—its 8th acquisition in three years—following a period of constriction and consolidation in the market.

27 Nov 2024

Bond tape hopefuls size up commercial risks as FCA finalizes tender

Consolidated tape bidders say the UK regulator is set to imminently publish crucial final details around technical specifications and data licensing arrangements for the finished infrastructure.

21 Nov 2024

The Waters Cooler: A little crime never hurt nobody

Do you guys remember that 2006 Pitchfork review of Shine On by Jet?

15 Nov 2024

Removal of Chevron spells t-r-o-u-b-l-e for the C-A-T

Citadel Securities and the American Securities Association are suing the SEC to limit the Consolidated Audit Trail, and their case may be aided by the removal of a key piece of the agency’s legislative power earlier this year.

14 Nov 2024

BlackRock, BNY see T+1 success in industry collaboration, old frameworks

Industry testing and lessons from the last settlement change from T+3 to T+2 were some of the components that made the May transition run smoothly.

01 Nov 2024

How ‘Bond gadgets’ make tackling data easier for regulators and traders

The IMD Wrap: Everyone loves the hype around AI, especially financial firms. And now, even regulators are getting in on the act. But first... “The name’s Bond; J-AI-mes Bond”