June 18, 2018

The CFTC has ordered JPMorgan Chase to pay $65M as a penalty for attempted manipulation of the USD ISDAFIX benchmark swap rate. The CFTC found that between January 2012 and January 2017, the bank made false reports in an attempt to manipulate the USD International Swaps and Derivatives Association Fix (ISDAFIX), a benchmark in a range of interest rate products, to benefit its own positions. Banks are supposed to accurately report their relevant benchmark every day at 11AM. According to the CFTC, JPMorgan would make bids, offers, and execute transactions immediately before 11AM to manipulate what rate was reported. CFTC

Tagged in: Fraud in CFTC-Regulated Markets, Market Manipulation and Trading Violations,