SEC v. J.P. Morgan Securities LLC (layering and spoofing, 2020)

Settled

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In 2020, the Securities and Exchange Commission settled an action with J.P. Morgan Securities LLC. The order finds J.P. Morgan Securities' trader placed layered orders on one side of the market for U.S. Treasuries that he did not intend to execute, to move prices for his genuine orders. It imposes $10 million disgorgement and a $25 million penalty, which is offset by the penalty in the parallel CFTC order. The release records a civil penalty of $25 million, disgorgement of $10 million.

The record

What was ordered

Civil penalty

$25m

Disgorgement

$10m

Prejudgment interest

—

Total relief

$35m

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

the Securities and Exchange Commission announced this matter on September 29, 2020 as release 3-20094. The respondent named is J.P. Morgan Securities LLC (0 individuals, 1 entity).

This library tags the matter as layering and spoofing, based on the conduct the regulator describes. Each tag links to a page explaining how that technique works, what statute it engages, and what penalties comparable actions have attracted. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

The order finds J.P. Morgan Securities' trader placed layered orders on one side of the market for U.S. Treasuries that he did not intend to execute, to move prices for his genuine orders. It imposes $10 million disgorgement and a $25 million penalty, which is offset by the penalty in the parallel CFTC order.

The conduct is recorded against bonds.

The relief recorded in our data is a civil monetary penalty of $25 million, disgorgement of $10 million. Penalty and disgorgement are distinct: disgorgement returns the gain, while the penalty is punitive. We store them separately so that aggregate figures across the library are not double-counted.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

What technique is this, and how does it work?

This action is tagged with 2 techniques in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Layering — see how it works, what statute it engages, and every other action tagged the same way.
• Spoofing — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2020-09-29 Administrative proceeding instituted (cease-and-desist)

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC order

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.