The Office of the Comptroller of the Currency (OCC) announced on Thursday that it is imposing a civil penalty of $250 million on JPMorgan for several operational deficiencies.

According to the OCC, JPMorgan "operated with gaps in trading venue coverage and without adequate data controls required to maintain an effective trade surveillance program." The bank allegedly failed to monitor billions of instances of trading activity on at least 30 global trading venues. As a result, the OCC issued a cease and desist order, mandating that JPMorgan address these deficiencies and enhance its program.

Under the terms of the order, JPMorgan is required to correct the identified gaps, seek approval from the OCC before adding new trading venues, and engage an independent third party to conduct an assessment of its trade surveillance program. In addition to the civil penalty, JPMorgan has paid the fine to the Treasury Department as directed by the OCC.

In a separate action, the Federal Reserve Board also penalized JPMorgan with fines amounting to approximately $98.2 million. The Federal Reserve Board cited program deficiencies that reportedly occurred between 2014 and last year, further compounding JPMorgan's regulatory challenges.

As of now, JPMorgan has not responded to requests seeking comment on the matter. The fines imposed by the OCC and the Federal Reserve Board highlight the growing scrutiny on banks and their trade surveillance practices to maintain market integrity and prevent misconduct.

It remains to be seen how JPMorgan will address and rectify the issues raised by the regulators. The penalties serve as a reminder to financial institutions of the importance of implementing robust and effective trade surveillance programs to meet regulatory requirements and mitigate potential risks associated with trading activities.