The nature of the probe is unclear, and the Monetary Authority of Singapore did not accuse the firm of any wrongdoing.
Scrutiny of the precious metals trading unit at J.P. Morgan, one of the world’s largest gold brokerages, has spread to Singapore, according to a «Reuters» report, which cited three unnamed sources.
In the U.S., the firm is embroiled in an ongoing investigation into its alleged manipulation of precious metal prices through spoofing, where traders place large buy order without following through on them, artificially inflating prices.
According to the U.S. Justice Department, this happened with gold, silver and palladium between 2008 and 2016, and took place at J.P. Morgan’s trading desks in London, New York and Singapore.
Former Singapore-Based Trader Pleads Guilty
So far, six current and former employees have been charged, with two pleading guilty. One of those is Christiaan Trunz, who was based in Singapore.
The unit’s global headcount has shrunk to six. Tonny Ka, the bank’s head precious metals trader in Singapore, has been placed on leave, and Donald Turnbull, the firm’s global precious metals trading chief based in New York, has also been forced out, the report said.