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JPMorgan fined for wash trades in oil, gasoline
Source: Reuters
JPMorgan fined for wash trades in oil, gasoline
By David Sheppard
NEW YORK | Fri Jun 1, 2012 12:44pm EDT
(Reuters) - JPMorgan Chase & Co executed wash trades on 10 separate occasions in U.S. crude oil and gasoline futures in the first half of last year in an effort to manage position limits, the operator of the New York Mercantile Exchange (NYMEX) said in a disciplinary notice on Friday.
Wash trades involve having the same dealer on opposite sides of the same trade, essentially selling to yourself, and are banned under exchange rules.
CME Group, which operates NYMEX, ordered JPMorgan to pay a fine of $30,000. One of the JPMorgan traders, Ebele Emelumadu, was fined a further $10,000.
The $30,000 fine, equivalent to just over one millionth of JPMorgan's total employee compensation last year of $29 billion, comes as the bank's trading practices are already under the spotlight after the now-infamous 'London Whale' racked up huge losses for the firm.
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By David Sheppard
NEW YORK | Fri Jun 1, 2012 12:44pm EDT
(Reuters) - JPMorgan Chase & Co executed wash trades on 10 separate occasions in U.S. crude oil and gasoline futures in the first half of last year in an effort to manage position limits, the operator of the New York Mercantile Exchange (NYMEX) said in a disciplinary notice on Friday.
Wash trades involve having the same dealer on opposite sides of the same trade, essentially selling to yourself, and are banned under exchange rules.
CME Group, which operates NYMEX, ordered JPMorgan to pay a fine of $30,000. One of the JPMorgan traders, Ebele Emelumadu, was fined a further $10,000.
The $30,000 fine, equivalent to just over one millionth of JPMorgan's total employee compensation last year of $29 billion, comes as the bank's trading practices are already under the spotlight after the now-infamous 'London Whale' racked up huge losses for the firm.
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Read more: http://www.reuters.com/article/2012/06/01/us-jpmorgan-washtrades-cme-idUSBRE8500WU20120601
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