JPMorgan fined for wash trades in oil, gasoline | Reuters
Reuters) - JPMorgan Chase & Co executed wash trades on 10 separate occasions in U.S. crude oil and gasoline futures in the first half of 2011, the operator of the New York Mercantile Exchange (NYMEX) said in a disciplinary notice on Friday.
Banned under exchange rules, wash trades involve having the same dealer on opposite sides of one trade, simultaneously buying and selling the same commodity.
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.
Excessive speculation and energy price manipulation are also hot political topics during this U.S. election year. The U.S. Commodity Futures Trading Commission (CFTC) is bringing in tighter position limits to try and curb the impact of individual firms on oil and other commodity prices.