The ruling states that JP Morgan identified surveillance holes in 2021 when onboarding a new trading exchange. The surveillance involved monitoring transactions on several venues and trading systems that were not performing as intended.

The issue emerged from a failure to set up specific data feeds such that the Wall Street behemoth's monitoring systems were consuming entire trading and order data. The bank was unable to incorporate billions of order signals from 2014 to 2021 into its monitoring systems on a single designated contract market in the United States.

Some of the CFTC's allegations have been acknowledged by JP Morgan. The bank was smacked with a $200 million penalty by the regulator, although that amount was reduced by $100 million due to prior agreements with the Federal Reserve and the OCC, which earlier this year levied fines totaling over $300 million.

In an earlier statement on the problem, JP Morgan stated: "We self-identified the issue, significant remedial actions have been taken and others are underway; and we have not found any employee misconduct or harm to clients or the market in our review of the previously uncaptured data."