The JPMorgan Chase in Australia has been fined A$775,000 ($509,252) for permitting suspicious client orders on wheat futures trading that were placed with the intent to manipulate the market.
According to Reuters, this was disclosed by the Australian Securities and Investments Commission (ASIC) on Thursday.
Securities and Investments Commission of Australia Says JPMorgan Chase Is 'Careless'
In a statement, ASIC said it found the failure of JP Morgan Securities to determine these suspicious trades to be "careless" and asserted that the company should have swiftly acted after the regulator flagged the transactions.
According to ASIC, farmers utilize the contracts to manage wheat price volatility, which directly affects consumer prices.
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Response of JPMorgan Chase to Allegations of the Regulatory in Australia
In response to ASIC's findings, a spokesperson for JPMorgan Chase told Reuters that JP Morgan Securities has already resolved the matter. ASIC said that JPMorgan did not challenge the allegations and paid the prescribed penalty.
The regulator noted that JP Morgan Securities failed to spot 36 orders placed on Eastern Australia Wheat futures between January 11 and March 3, 2022, that were intended to manipulate the market.
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