The New York Stock Exchange Regulation Inc. has censured and fined four firms for trade violations. The four investment firms, Citigroup, AK Capital, National Financial Services, and Tradestation, agreed to the censures and fines but did not admit to or deny wrongdoing.
According to NYSER:
• Citigroup Global Markets Inc. allegedly cancelled 365 market-on-close (MOC) orders after the cutoff time at 3:40 ET on four 2007 trade dates and submitted, between December 9 2008 and January 5, 2009, 12,480 limited-on-close (LOC) orders after the cutoff time on 18 trade dates. Citigroup was ordered to pay a $150,000 fine.
• National Financial Services, LLC employees allegedly engaged in wrongdoing related to LOC and MOC orders it made on eight trade dates between 2006 and 2008. NFS also allegedly neglected to properly supervise these employees. The firm agreed to a $75,000 fine.
• Tradestation allegedly failed to oversee and put into place adequate internal compliance controls, took part in conduct not in line with the fair and equitable trade principals involving odd-lot orders, and neglected to find out necessary facts about certain orders and clients. Tradestation agreed to a $100,000 fine.
• AK Capital allegedly failed to use background checks on employees, failed to set up written policies designed to prevent the misuse of material nonpublic data, and failed to review trade confirmations and certain clients’ monthly account statements. The NYSE Arca options-trader registrant also allegedly neglected to keep records and books that accurately showed all liabilities, assets, capital accounts, and income expenses. The firm agreed to a $20,000 fine.
Related Web Resource:
Monthly Disciplinary Actions – October 2009, NYSE Regulation Continue Reading ›