Public Statements & Remarks

Statement of Commissioner Christy Goldsmith Romero Regarding Enforcement Action Against JP Morgan Chase Bank, N.A., et al. for Swap Data Reporting Failures

July 05, 2022

I strongly support this enforcement action against JP Morgan for violating CFTC swap data reporting requirements for years, and failing to report accurately more than 2.1 million swap transactions.  I am quite concerned by the duration and substantial nature of violations by JP Morgan.  I also note that JP Morgan has been the subject of several CFTC enforcement actions over the years, and the subject of many other federal agency enforcement actions.

Swap data reporting is fundamental to post-crisis financial regulation.  It is one of the key measures in the Dodd Frank Act to bring transparency to risk previously hidden.  This transparency is necessary for regulators to identify risk, and ultimately to reduce risk that could become systemic.  Transparency is also necessary for the CFTC to fulfill its mission to promote market resilience and integrity so that our markets remain the strongest and safest in the world.  This requires, among other things, the CFTC to conduct market and financial surveillancesurveillance that relies on swap dealers fulfilling their obligation to provide accurate and complete data.

This case should serve as a message to all swap dealers that the CFTC will bring justice for failures in swap data reporting.  It has been more than 10 years since the Dodd-Frank Act swap data reporting rules have been in place.  It is far past time for swap dealers to come into compliance with the law.