CME Fines JPMorgan For Wash Trades In Crude Oil

Law360, New York (June 1, 2012, 3:24 PM EDT) -- JPMorgan Chase Bank NA and one of its traders were fined $40,000 by derivatives exchange CME Group Inc. on Friday for making so-called “wash trades,” in which the bank stood on both sides of a crude oil futures deal.

On 10 separate occasions between Jan. 1, 2011, and June 30, 2011, JPMorgan executed trades in gasoline and West Texas Intermediate — the benchmark U.S. crude oil futures contract — between separate entities with the same owner, according to a CME disciplinary notice.

In each of the...
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