J.P. Morgan Securities LLC has agreed to pay a fine of $3 million as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From June 2008 to August 2024, JPMS inaccurately reported approximately 820,000 short interest positions involving approximately 77 billion shares. The inaccurate reporting resulted from multiple causes that each impacted the firm’s short interest reporting at different intervals during the relevant period.
In certain instances, the firm overreported its short interest positions. In other instances, the firm underreported its short interest positions. As a result, JPMS violated FINRA Rules 4560 and 2010, and NASD Rules 3360 and 2110.
Additionally, during the same period, JPMS failed to establish and maintain a supervisory system, including written supervisory…
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