The regulatory arm of the New York Stock Exchange levied
trading-violations fines of $175,000 against JPMorgan Chase &
Co. (JPM) and $125,000 against former Bear Stearns & Co. units
for trading ahead or alongside of customers.
JPMorgan Securities on five occasions between January 2005 and
December 2006 entered proprietary trades ahead of or alongside
customer orders without obtaining customer permission, NYSE
Regulation said Wednesday in its monthly regulatory report. On four
occasions, the firm failed to document customer consent to trade
ahead of alongside customers' orders.
Bear Wagner Securities and other former Bear Stearns-owned
operations were found between January 2003 and May 2005 to have
failed to give precedence to options orders entrusted to them
before executing at the same price purchases or sales for accounts
in which they had interest, said NYSE Regulation. Between September
2005 and February 2008, the firms also committed various
note-handling violations.
Bear Wagner was recently sold by JPMorgan to Barclays PLC
(BCS).
The accused consented to the penalties.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com;