Although crypto currencies may yield many surprising benefits, one of the oldest rules of commerce still applies to investing and trading in digital assets — if it seems to be too good to be true, it might be. That is the essence of a guidance, “Investor Alert: Watch Out for Fraudulent Digital Asset and ‘Crypto’… Read More >>
SEC Explores Impacts of Digital Assets at Forum
The SEC is shining more light on distributed ledger technology (DLT) and digital assets via a forum on May 31 hosted by the regulator’s Strategic Hub for Innovation and Financial Technology (FinHub), an effort to actively engage with innovators, developers, and entrepreneurs. The event is an acknowledgment of the importance of DLT and digital assets… Read More >>
SEC Raises Key SRO Fee by 59 Percent
Without much fanfare, the Financial Industry Regulatory Authority (FINRA) announced earlier this month via an Information Notice that it had to raise certain fees controlled by the SEC by 59 percent. “The fees that FINRA controls are staying flat,” a FINRA spokesperson tells FTF News. “Effective April 16, 2019, the Section 31 fee rate applicable… Read More >>
CME Group Launches Data Insights for Hedge Funds
Benchmarking Tool Debuts for Hedge Funds & Others CME Group, a provider of derivatives marketplaces, reports the launch of ENSO Data Insights, which it characterizes as “a benchmarking tool which leverages ENSO’s alternative data set to help customers make more informed investment decisions.” ENSO Data Insights “provides hedge funds, asset managers and banks … access to… Read More >>
OCIE Exams Uncover Cybersecurity & Privacy Weaknesses
Staff members of the Office of Compliance Inspections and Examinations (OCIE) have identified cybersecurity and privacy control deficiencies among securities trading firms registered with the SEC and have issued a risk alert that reminds advisers and broker-dealers of their obligations. “In response to these observations, many of the registrants modified their written policies and procedures… Read More >>
Merrill Lynch Pays $8M to Settle ADR Allegations
Merrill Lynch, Pierce, Fenner & Smith Inc. will pay more than $8 million to settle charges of improper administration of “pre-released” American depositary receipts (ADRs), the Securities and Exchange Commission (SEC) reports. Merrill Lynch neither admits nor denies the SEC’s findings, but did submit an “Offer of Settlement.” In it, the firm agreed to pay… Read More >>
Time to Centralize Reference Data for Corporate Bonds?
The Financial Industry Regulatory Authority (FINRA), a self-regulatory organization (SRO), wants to “expand the collection and dissemination of new-issue reference data for corporate bonds,” and is seeking the approval of the SEC to do so, according to FINRA. As part of the proposal, FINRA wants its Trade Reporting and Compliance Engine (TRACE) “to serve as… Read More >>
SEB to Use DTCC Repository for SFTR Compliance
SEB Extends DTCC Agreement via Global Trade Repository Swedish financial group Skandinaviska Enskilda Banken (SEB) has decided to use the Global Trade Repository (GTR) services of the DTCC to meet regulatory obligations under the Securities Financing Transactions Regulation (SFTR) that are likely to take effect in April 2020. The decision is an extension of SEB’s… Read More >>
Wedbush Settles Supervisory Failure Charges for $250K
The Los Angeles-based Wedbush Securities Inc. and the SEC have come to a settlement over charges that the firm failed to properly supervise one of its registered representatives, allegedly involved in a pump-and-dump scheme. The agreement, which follows an administrative proceeding from last year, will require the firm to pay a $250,000 penalty and agree… Read More >>
Cantor Fitzgerald Fined $2M for Alleged SHO Violations
The Financial Industry Regulatory Authority (FINRA) reports that it has fined Cantor Fitzgerald & Co. $2 million for regulation SHO violations and supervisory failures spanning a period of at least five years. The SEC adopted regulation SHO to “address concerns regarding persistent failures to deliver and potentially abusive ‘naked’ short selling, e.g., the sale of… Read More >>
