JP Morgan Securities hit with $775,000 fine

JP Morgan Securities Australia Limited has been fined $775,000 for permitting suspicious client orders on the futures market.

The Australian Securities and Investments Commission (ASIC) announced that its Markets Disciplinary Panel (MDP) had fined J.P. Morgan Securities Australia Limited (JPMSAL) $775,000 for permitting suspicious client orders to be placed on the futures market, ASX 24.  

It said the MDP found JPMSAL should have suspected 36 orders placed by a client between 11 January 2022 and 3 March 2022 were submitted with the intention of creating a false or misleading appearance with respect to the market for, or the price of, the Eastern Australia Wheat futures January 2023 (WMF3) contracts.  

Commenting on the fine, ASIC Deputy Chair Sarah Court said, ”There are real world consequences for this sort of behaviour which is why tackling manipulation in energy and commodities derivatives markets has been an ASIC priority”,

“Farmers use these contracts to manage wheat price fluctuations which can affect what Australians pay at the checkout.”

“Market participants are the gatekeepers to Australia’s markets, and they need to uphold the highest standards. They have a central role in detecting, preventing and disrupting suspicious trading activity, particularly in periods of volatility as was the case here.”