The Commodity Futures Trading Commission seems to be moving toward fighting a case against JPMorgan Chase & Co (NYSE:JPM). The investment bank is denying that it manipulated the credit markets as part of the London Whale trades that lost the company more than $6 billion. CNBC reported the news earlier today.

JPMorgan Chase

The denial of wrongdoing decreases the chances that a settlement will be reached between the CFTC and JPMorgan Chase & Co (NYSE:JPM). That could mean a lengthy court battle between the two. Traders reacted negatively to the news on today’s market and JPMorgan had lost about 1.5 percent of its value heading into close.

JPMorgan denies market manipulation

JPMorgan Chase & Co (NYSE:JPM) and the CFTC are currently in negotiations over the London Whale case. The investment bank is charged with manipulating the price of certain corporate-credit derivatives during 2012. The notice that the CFTC was considering charging the company was delivered on September 16, and JPMorgan was given two weeks to respond.

The CFTC was seeking some pretty tough terms in the London Whale case and JPMorgan is fighting to see those reduced. The government shutdown in the United States has kept much of the staff at the CFTC out of office, and that has further slowed down the negotiating process.

A settlement is still possible, but it is more unlikely given how resolute JPMorgan Chase & Co (NYSE:JPM) is in its defense of its actions. If the company decides to avoid settlement and defend itself in court, it could be many months before the case is heard. The government shut down has put a damper on CFTC activity.

JPMorgan Wells Notice

JPMorgan Chase & Co (NYSE:JPM) was served with a Wells notice from the CFTC on September 16. The notice gave the company 14 days to respond or to settle the case. The hard line that the CFTC took in regards to a settlement made that course less likely, and the company has responded by denying the charges.

The CFTC charge is just one of many that JPMorgan Chase & Co (NYSE:JPM) is dealing with at the moment, and the company’s shareholders are seeing the value of their stock pressured as a result. Shares in the firm have lost about 4 percent of their value in the last three months trading, but remain up more than 17 percent for the year in 2013.