A recent Risk Alert issued by the SEC’s Office of Compliance Inspections and Examinations (OCIE) has found “deficiencies” and possible conflicts of interest in the actions of private equity and hedge fund advisors that might have “caused investors in private funds … to pay more in fees and expenses than they should have or resulted… Read More >>
SEC & FINRA Penalize SG Americas Securities
The U.S. Securities and Exchange Commission and FINRA, a financial services self-regulatory authority, have together fined SG Americas Securities LLC a total of $3.1 million for allegedly submitting inaccurate trade data for seven-plus years. SG Americas Securities is an investment management company that is a subsidiary of Société Générale S.A., which is a French multinational… Read More >>
Northern Trust Launches Another Umbrella Trust
Northern Trust has launched an umbrella trust, dubbed the Datum One Series Trust, that it will offer to asset managers that would prefer to focus on distribution and investment goals, and let the custodian manage the infrastructure and back-office services. The new offering will include operational infrastructure support services via an integrated model, says Barbara… Read More >>
CME’s Eurodollar Options Floor to Reopen in August
CME to Add Safety Measures to Options Floor CME Group reports that it will reopen its Eurodollar options trading pit on August 10, 2020. In advance of that reopening date, the company intends to “reconfigure the pit to meet social distancing standards and put additional safety measures in place,” CME officials say in a statement. “All… Read More >>
SEC Probe Spurs Firm to Revamp MNPI Policies
Private equity firm Ares Management is settling with the SEC over charges that it lacked proper policies and procedures to oversee the handling of “material nonpublic information [MNPI],” a.k.a. insider information, according to the regulator’s order. The case revolves around the firm’s representation on a board of directors “of a listed issuer” in the Ares investment… Read More >>
Morningstar Credit Ratings Settles Conflict-of-Interest Case
The U.S. Securities and Exchange Commission reports that it has settled with New York-based credit-rating agency Morningstar Credit Ratings, which it charged with violating a long-standing conflict-of-interest rule designed to separate a firm’s credit ratings and analysis from its sales and marketing. Morningstar Credit Ratings, a subsidiary of Morningstar, Inc., neither admits nor denies the… Read More >>
Morgan Stanley Settles Wrap-Fee Case with SEC
Morgan Stanley Smith Barney (MSSB) is settling charges that it provided misleading information to retail clients in its retail wrap fee programs regarding trade execution services and transaction costs, and the firm will pay a $5 million penalty that will be distributed to harmed investors, the U.S. Securities and Exchange Commission (SEC) reports. The commission’s… Read More >>
SIFMA & SROs Settle CAT Fight
SIFMA and key securities exchanges/self-regulatory organizations (SROs) have settled a big disagreement over the liability for data breaches that may occur via the Consolidated Audit Trail (CAT) big data market surveillance initiative. As envisioned, the CAT data repository of securities transaction data would enable regulatory surveillance via “an extensive audit trail that will capture customer… Read More >>
Members Exchange Wins SEC’s & BlackRock’s Approval
A securities exchange start-up, the Members Exchange (MEMX), is on a roll via new strategic financing led by asset manager BlackRock, following a key approval by the SEC. While the launch of its first transaction venue was delayed by the COVID-19 pandemic, MEMX officials want their venue to get underway during the third quarter of… Read More >>
Bloomberg Settles Charges It Misled Tradebook Customers
The U.S. Securities and Exchange Commission has filed “settled charges” against registered broker-dealer Bloomberg Tradebook LLC, founded in 1996 but no longer in operation, for “making material misrepresentations and omitting material facts” about how the firm handled certain customer trade orders. Bloomberg Tradebook has agreed to be censured and will pay a $5 million dollar… Read More >>
