JPMorgan Fined $30 Million by SFC for Dark Pool Failings
Inadequate implementation of dark pool venue systems and controls in breach of Hong Kong regulator’s rules.
Alongside failure to implement adequate systems and controls for client facilitation and principal trading business, and short selling activities, JPMorgan Broking (Hong Kong), JPMorgan Securities (Asia Pacific) and JPMorgan Securities (Far East) were reprimanded and fined $15 million, $12 million, and $3 million, respectively, by the SFC for breaching regulations aorund its dark pool systems implementation.
The Hong Kong regulator found that following the authorization of JPMorgan's dark pool venue JPMX to begin activity as a pure agency-to-agency matching platform, "numerous principal orders of JPMorgan were incorrectly routed into the agency pool of JPMX for matching between March and July 2012 due to human and systems errors," with none of the orders crossed in JPMX.
JPMorgan is the latest firm to fall foul of wider regulations governing the activity of dark pool venues in Hong Kong, after BNP Paribas received a $15 million fine in August after failing to give priority to highly priced orders as had originally been claimed by the French bank.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: https://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
How banks are utilizing new AI forms in their KYC process
Execs from JP Morgan, ING, and Standard Chartered explain how they are looking to use agentic AI to streamline KYC workflows.
T+1 in Asia-Pacific: Preparing post-trade operations for what’s ahead
There are benefits of Asia-Pacific markets moving to T+1, but there are unique complexities to tackle, says DTCC’s Val Wotton.
Equity data plans eye Dec. 6 for overnight trading launch
The US SIPs are looking to launch near 24-hour operations as exchanges seek to extend their hours.
Securities industry nears tipping point for dual messaging standards
Industry groups call for a freeze on ISO 15022 maintenance to accelerate ISO 20022 adoption.
Sprecher says ICE will expand positioning in crypto, prediction markets
Jeff Sprecher, CEO of ICE: “We have two new [chairmen at] the SEC and CFTC that are working to try to pull the entrepreneurship in the wild west into the financial system.”
Esma won’t soften regulatory expectations for cloud and AI
CCP supervisory chair signals heightened scrutiny of third-party risk and operational resilience.
Esma supervision proposals ensnare Bloomberg and Tradeweb
Derivatives and bonds venues would become subject to centralized supervision if the proposed reforms go through.
Cyber insurance premiums dropped unexpectedly in 2025
Competition among carriers drives down premiums, despite increasing frequency and severity of attacks.
