Skip Navigation Links

Case Summary

JP MORGAN SECURITIES LLC NYME 12-08778-BC - J.P. MORGAN SECURITIES NFA ID: 0000815

Respondent/Effective Date Summary
 NFA IDRespondentEffective Date
 0000815JP MORGAN SECURITIES LLC08/16/2012
Rule Summary
 NFA IDRespondentRule Type
 0000815JP MORGAN SECURITIES LLC• Rule 854 - Concurrent Long and Short Positions
Committee Summary
 NFA IDRespondentCommittee
 0000815JP MORGAN SECURITIES LLC• BUSINESS CONDUCT COMMITTEE
Action Summary
 NFA IDRespondentAction Types
 0000815JP MORGAN SECURITIES LLC• TRADE PRACTICE
Penalty/Event Summary
 NFA IDRespondentPenalty/EventEvent Date
 0000815JP MORGAN SECURITIES LLC• FINE PAID $6500008/17/2012
Narrative Summary
Narrative for 0000815 - JP MORGAN SECURITIES LLC
Pursuant to an offer of settlement that J.P. Morgan Securities LLC (“JPM”) presented at a hearing on August 14, 2012, in which JPM neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that for trade date December 20, 2011, the last trading day for physically settled January 2012 Crude Oil (“JAN12 Crude”) futures contracts, JPM inadvertently overstated open interest in the JAN12 Crude futures contract by 864 contracts, or 46.9% resulting from a clerical error while affecting a transfer. The Panel also found that on December 20, 2011, JPM offset concurrent long and short positions totaling 1,112 JAN12 Crude futures contracts that it held for a customer. This offset resulted in an overstatement of open interest in the JAN12 Crude futures contract of 5.2% for trade date December 19, 2011.

The Panel found that as a result, JPM violated NYMEX Rule 854.

In accordance with the settlement offer, the Panel ordered JPM to pay a fine to the Exchange in the amount of $65,000. This $65,000 fine reflects the total fine amount of a global settlement involving NYMEX cases 11-08682-BC and 12-08778-BC.

This action became final on August 14, 2012 and effective August 16, 2012.

Important Note: Please see companion case NYMEX 11-08682-BC.

 
 
NFA is the premier independent provider of efficient and innovative regulatory programs that safeguard the integrity of the derivatives markets.