JP Morgan has settled with the CFTC for $65m for the attempted manipulation of the ISDAFIX benchmark. The press release can be found here and the order here. The fine relates to activity from 2007 to 2012, during which time there were attempts to influence the benchmark by both trading activity (trading in the pricing window for the purpose of influencing the index) and also via improper rate setting. The fine is given having recognised that JP Morgan cooperated with the CFTC and has also introduced improved processes to reduce the risk of a repeat occurrence.
In the meantime, the UK’s FICC Markets Standards Borad, has issued this Transparency Draft of a new Statement of Good Practice on Suspicious Transaction and Order Reporting. This covers monitoring and suspicious transaction and order best practice in financial markets, including commodities markets. The press release can be found here.
Investigation activity continues with this article on the Bloomberg web site reporting that the US Justice Department together with the CFTC are looking into possible spoofing and manipulative activity relating to crypto currencies. Such activity has led to other jurisdictions either banning platforms or attempting to regulate cryptos more closely.
Elsewhere, the Dalian Commodity Exchange in China has announced an increased number of investigations into “abnormal” activity on the venue. The announcement can be found here.