Agency broker ITG Inc. and its subsidiary AlterNet Securities Inc. are paying $12 million to settle charges via the SEC that it misled dark pool subscribers. Earlier this year, officials at ITG, which also offers financial technology, acknowledged the case and settlement amount. ITG maintains that it has taken remedial action while neither admitting nor… Read More >>
Nomura Pays $480M for Allegedly Misleading RMBS Investors
The U.S. Justice Department has settled with Nomura Holding America Inc. and its affiliates over federal civil claims that Nomura allegedly misled investors via the marketing, sale and issuance of residential mortgage-backed securities (RMBS) between 2006 and 2007, government and bank officials confirm. The settlement will cost Nomura $480 million, and Nomura officials say firm… Read More >>
Credit Suisse Settles RES Charges with SEC & NYAG
The SEC reports that Credit Suisse Securities (USA) LLC will pay $10 million to settle charges, brought collaboratively by the SEC and the Office of the New York Attorney General (NYAG), alleging “material misrepresentations and omissions made in connection with its now-closed Retail Execution Services (RES) business’ handling of certain customer orders.” “Credit Suisse’s RES… Read More >>
Cowen Execution Services Settles Blue Sheet Data Case
New York-based Convergex Execution Solutions LLC, the broker-dealer now known as Cowen Execution Services LLC, will pay $2.75 million to settle charges that it failed to provide the SEC with “true and complete” securities trading information in its electronic blue sheet, or EBS, data-file submissions. Convergex admitted to the findings in a recent SEC order… Read More >>
SocGen May Pay $1.27B Penalty via Sanctions Case
Société Générale officials report that they are working with seven major American authorities to resolve a U.S. sanctions investigation, and that an ultimate settlement may cost the French banking giant $1.27 billion (€1.1 billion), which adds to the bank’s list of sanctions and regulatory compliance woes. “ … Société Générale has entered into a phase… Read More >>
BNP Paribas Securities Penalized $90M via Benchmark Case
The CFTC reports that BNP Paribas Securities Corp. will pay a $90 million civil monetary penalty to settle charges that it attempted to manipulate the ISDAFIX benchmark. New York-based BNP Paribas Securities is a wholly-owned subsidiary of the BNP Paribas Group, a French international banking group. BNP Paribas Securities Corp.’s USD ISDAFIX manipulations “involved multiple… Read More >>
Moody’s Settles Charges of Inadequate Internal Controls
Moody’s Investors Service Inc. will be paying $16.25 million in penalties to the SEC via two regulatory orders that resolve charges that the credit rating agency had inadequate internal controls that ultimately led to 650 incorrect residential mortgage-backed securities (RMBS) ratings, representing a notional value of more than $49 billion. The Moody’s case “marks the… Read More >>
How Three Traders Allegedly Caused $81M in Losses
The SEC reports that Citigroup recently agreed to pay $10.5 million in penalties to settle charges involving its books and records, its internal accounting controls, and its trader supervision. Citigroup Inc. and its U.S. broker-dealer subsidiary, Citigroup Global Markets Inc. (CGMI), also will pay a $5.75 million penalty to settle the inaccurate books and records… Read More >>
Legg Mason Settles SEC Bribery Case for $34M
Asset manager Legg Mason Inc. will pay more than $34 million to settle the SEC allegations that the firm engaged in a bribery scheme via government officials in Libya that was in clear violation of the Foreign Corrupt Practices Act (FCPA). Legg Mason is charged with violating “the internal accounting controls provision of the Securities… Read More >>
FINRA Charges Interactive Brokers with Regulation SHO Violations
Electronic execution brokerage firm Interactive Brokers has been fined $5.5 million by FINRA, a self-regulatory organization (SRO), for allegedly violating the rules for short sale practices — covered by the SEC’s Regulation SHO —and for supervisory failures from July 2012 through June 2015. “Regulation SHO established ‘locate’ and ‘close-out’ standards that are primarily aimed at… Read More >>
