WSJ: JPMorgan's $4 Million 'Salami Incident' Sparks Industry Backlash Over Trade-Reconciliation Practices
- The Wall Street Journal reported a JPMorgan trading desk shaved tiny fractions of cents off thousands of internal trades, pocketing roughly $4 million, in a practice rivals call "salami slicing" (https://www.wsj.com/finance/regulation/jpmorgans-4-million-salami-incident-is-fueling-a-backlash-from-banks-879cf5a4?mod=rss_markets_main).
- Counterparties and clearing firms are now reviewing their trade-reconciliation controls, and the episode is drawing scrutiny from bank compliance teams about whether similar exposures could exist elsewhere.
- The story lands as the industry is already digesting DTCC's rare double-settlement day on June 30, amplifying focus on post-trade plumbing.