J.P. Morgan Securities has been fined $300,000 for Reg SHO 204 violations from 2009 to 2015.
In separate Letters of Acceptance, Waiver and Consent (“AWC”), FINRA, NYSE and NYSE American found that in attempting to allocate fail to deliver positions to two introducing broker-dealers (“IBs”) responsible for the positions, the firm’s procedures for allocating fails was inadequate, as was the notice that it provided to the IBs of their obligation to buy in the relevant securities. Further, the firm did not cause all required buy-ins and did not enforce the required pre-borrow or penalty box requirements.
The FINRA letter is available at https://www.finra.org/sites/default/files/fda_documents/2014041721501%20J.P.%20Morgan%20Clearing%20Corporation%20nka%20J.P.%20Morgan%20Securities%20LLC%20CRD%2079%20AWC%20va.pdf