JPMorgan Chase disclosed in a regulatory filing it expects to be penalized approximately $350 million by two unnamed U.S. regulators over lapses in its trading surveillance activities.

The firm self-identified “certain trading and order data through the CIB (corporate and investment bank) was not feeding into its trade surveillance platforms,” according to JPMorgan’s latest annual report filed Friday.

As part of an internal investigation, the firm said it nearly completed reviewing data not originally surveilled and, so far, has “not identified any employee misconduct, harm to clients, or the market.”

However, the company admitted data gaps on one venue related to sponsored client activity were “significant.”

Remedial efforts have included enhancements to the CIB’s venue inventory and data completeness controls, the firm said. As part of the pending settlements with the two regulators, the firm said it will be required to “complete its remediation, engage an independent consultant, and pay aggregate civil penalties of approximately $350 million.”

Advanced negotiations with a third U.S. regulator are still pending, said JPMorgan, which added there are no assurances those discussions will result in a resolution.

Jeff Dale is Managing Editor, Editorial Projects and Analytics, at Compliance Week. He previously served as Compliance Week's Digital Editor and has worked as a copy editor at the Boston Herald and city editor at The Hour Publishing Co. in Norwalk, Conn.View full Profile

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