OCC Clears JPMorgan Chase After Trade Surveillance Program Upgrade

The OCC issued the Order Terminating the Consent Order on March 30 and announced it in a Thursday (April 16) press release.

The regulator said in its March 30 order that “the OCC believes that the safety and soundness of the Bank and its compliance with laws and regulations does not require the continued existence of the Order.”

JPMorgan Chase did not immediately reply to PYMNTS’ request for comment.

When announcing the consent order in March 2024, the OCC said in a press release that it found that JPMorgan Chase Bank operated with gaps in trading venue coverage and without adequate data controls required to maintain an effective trade surveillance program, resulting in its failure to surveil billions of instances of trading activity on at least 30 global trading venues.

“These gaps and deficiencies in JPMC’s trade surveillance program constitute unsafe or unsound banking practices,” the OCC said in the March 2024 release.

The OCC imposed a $250 million civil money penalty against the bank and issued a cease and desist order requiring it to improve its trade surveillance program.

“The order requires the bank to correct the deficiencies, to seek the OCC’s non-objection before onboarding new trading venues, and to obtain an independent third-party to conduct a trade surveillance program assessment,” the OCC said at the time.

On the same day, March 14, 2024, the Federal Reserve issued an enforcement action against JPMorgan Chase & Co. and fined the bank $98.2 million, saying it took this action in coordination with the OCC.

The Fed said it found that between 2014 and 2023, the bank had an inadequate program to monitor firm and client trading activities for market misconduct. The Fed said it required JPMorgan Chase to address those inadequate monitoring practices.

In other, separate actions announced Thursday by the OCC, the regulator said it terminated a consent order against Illinois-based CNB Bank & Trust, as well as a formal agreement with New York-based Generations Bank.