JPMorgan Fined for Bad Trade Surveillance Parameter Settings
Trillium, 1 August 2017
Last week, the enforcement divisions of the three major exchange groups released a settlement agreement with JP Morgan Securities imposing an $800,000 fine for inadequate pre-trade controls and post-trade surveillance.
The post-trade surveillance portion of the settlement agreement revealed that JPMS used an unnamed “commercial non-proprietary Third-Party Surveillance System” (it wasn’t Surveyor), but set the parameters of that system “at levels that were unreasonable to detect activity that may be indicative of layering and spoofing activity.”
