ICAN regulators have banned JP Morgan from trading in the US electricity market for six months, after finding that the bank made factual misrepresentations and omissions during a probe into market fixing.
JP Morgan Ventures Energy is not allowed to sell power at market rates for six months from 1 April 2013, the Federal Energy Regulatory Commission (FERC) said in a statement.
The punishment relates to a probe into the Californian market in 2011 and JP Morgan’s unsuccessful appeal against a $486,000 fine. FERC said it imposed the suspension as a result of “the egregious nature of JP Morgan’s repeated submission of false and misleading statements”.
JP Morgan remains free to trade other energy-related products. The bank apologised to FERC in October, claiming it had inadvertently not provided all the information. The bank said yesterday the removal of its trading powers “is unsupported by FERC’s own regulations”.