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JP Morgan manipulation fine and other anti abuse news

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.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.


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