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JPMorgan Chase & Co. (NYSE: JPM) and its subsidiaries agreed to the order of U.S. regulators requiring it to pay a total of $920 million to resolve charges that its traders practiced spoofing to manipulate the precious metals and Treasury securities markets.

The U.S. Department of Justice (DOJ), the Commodity Futures Trading Commission (CFTC), and the Securities Exchange Commission (SEC) conducted parallel investigations against JPMorgan and subsidiaries regarding its alleged manipulative trading practices.

On Tuesday, the three regulators announced that the multinational investment bank and financial services holding company entered into separate agreements to settle their allegations.

JPMorgan entered into a deferred prosecution agreement with the DOJ

According to the Justice Department, JPMorgan entered into a deferred prosecution agreement (DPA) in connection with the criminal information filed against it in the District of Connecticut,

In the criminal information, the DOJ charged the investment bank and financial services holding company with two counts of wire fraud—the first involving tens of thousands of instances of illegal trading on precious metals futures contracts and the second involving thousands of episodes of illegal trading of U.S. Treasury futures contracts and in the secondary market for U.S. Treasury bonds and notes.

Under the DPA, JPMorgan and its subsidiaries agreed to pay more than $920 million in penalties, disgorgements, and victim compensation. A portion of that amount particularly the civil monetary penalty will be paid to the CFTC.

Based on the admissions and court documents, a number of JPMorgan traders allegedly engaged in a fraudulent scheme related to the purchase and sale of gold, silver, platinum, and palladium futures contracts for eight years from March 2008 to August 2016. The traders on its precious metals desk allegedly practiced trading intended to deliberately trigger or defend barrier options held by JPMorgan to prevent losses.

Two JPMorgan traders on its precious metals desk already pleaded guilty to the charges filed against them by the Justice Department.

On October 9, 2018, John Edmonds pleaded guilty to one count of commodities fraud and one count of conspiracy to commit wire fraud, commodities fraud, commodities price manipulation, and spoofing.

On August 20, 2019, Christian Trunz pleaded guilty to one count of conspiracy to engage in spoofing and one count of spoofing in connection with his precious metals futures contracts trading at JPMorgan and other financial services firms.