J.P. Morgan Securities LLC has agreed to pay a fine as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
Between September 2019 and May 2021, JPMS failed to take reasonable steps to establish that the intermarket sweep orders (ISOs) it routed met the requirements set forth in Rule 600(b)(31).
Specifically, the firm experienced increased message activity, due in part to the firm’s migration to a new exchange trading platform, which resulted in order routing delays. The delays caused the firm, in certain instances, to rely on outdated market data snapshots of protected quotes that did not reflect the current market at the time the firm routed orders to the trading centers.
As a result, the firm routed a total of 6,682 orders that were priced through other market centers’…
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