JP Morgan fined for not reporting half of FX swap trades

JP Morgan has been fined by the US Commodity Futures and Trading Commission for failing to report more than two million short-dated foreign exchange swap trades over a five-year period.

According to a CFTC order released yesterday (July 6), these short-dated FX swaps – often referred to as “tomorrow-next swaps”, in which two currencies are exchanged the day after execution and then reversed at a predetermined rate on the following business day – represented roughly 51% of all the FX swap trades