The Commission on trade commodity futures (CFTC) on Monday fined JPMorgan Chase Bank in the amount of $65 million for attempting to manipulate the value of the underlying US dollar index.
Claims to the CFTC, during the five-year period from 2007 to 2012, JPMorgan traders tried to manipulate interest rate of USD ISDAFIX, used for the derivatives trading under the name of swaptions — options on swaps.
The Commission found that JPMorgan traders were engaged in the publication of false indicators, and putting pressure on the index directly before the daily fixing of the reference point.
“This penalty is one of the steps the CFTC, which demonstrate the Commission’s effort to eliminate the manipulation of our markets and to protect those who rely on the objectivity of critical financial indicators,” said James MacDonald (James McDonald), the Director of the division of the control of the CFTC.
It is worth noting that the price increase of bitcoin last year, has been repeatedly linked with the manipulation in the market, but the emergence of this news serves as an excellent reminder that manipulations exist in almost all financial markets and are even regulated financial institutions.
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