{"id":5731,"date":"2014-12-12T00:00:00","date_gmt":"2014-12-12T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/12\/morgan_stanley_fined_4m_by_the"},"modified":"2022-03-11T13:34:29","modified_gmt":"2022-03-11T19:34:29","slug":"morgan-stanley-fined-4m-by-the","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-fined-4m-by-the\/","title":{"rendered":"Morgan Stanley Fined $4M by the SEC for Market Access Rule Violation"},"content":{"rendered":"<p>\t\t\t\tThe Securities and Exchange Commission is ordering Morgan Stanley (MS) to pay $4 million for violating the market access rule. The rule mandates that brokerage firms implement adequate risk controls before giving customers market access. An SEC probe, however, found that Morgan Stanley, which gives institutional customers direct market access via an electronic trading desk, did not have the necessary controls in place to stop a rogue trader from putting in orders that went over pre-set trading thresholds.<\/p>\n<p>David Miller, who was an institutional sales trader, then purportedly exploited access to the market. Without Morgan Stanley\u2019s knowledge, he committed financial fraud that would later result in the closure of Rochdale Securities, which was the financial firm where he worked. Miller, who has since partially settled the SEC\u2019s case, pleaded guilty to parallel criminal charges. He was sentenced to 30 months behind bars.<\/p>\n<p>Miller misrepresented to Rochdale Securities that a customer had given the authorization to buy Apple stock. While the customer order was for the purchase of 1,625 Apple shares, Miller instead put in numerous orders, buying 1.625 million shares. He intended to share in the profit if the stock made money but if it didn\u2019t he planned to say he made a mistake about the order\u2019s size.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-fined-4m-by-the\/\"  title=\"Continue Reading Morgan Stanley Fined $4M by the SEC for Market Access Rule Violation\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Securities and Exchange Commission is ordering Morgan Stanley (MS) to pay $4 million for violating the market access rule. The rule mandates that brokerage firms implement adequate risk controls before giving customers market access. An SEC probe, however, found that Morgan Stanley, which gives institutional customers direct market access via an electronic trading desk, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3787,3761],"tags":[],"class_list":["post-5731","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-morgan-stanley","category-securities-and-exchange-commis"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Morgan Stanley Fined $4M for Market Access Rule Violation &#8212; Investor Lawyers Blog<\/title>\n<meta name=\"description\" content=\"The SEC is ordering Morgan Stanley to pay $4 million for violating the market access rule when it was unable to stop a rouge trader&#039;s behaviour.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-fined-4m-by-the\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Morgan Stanley Fined $4M for Market Access Rule Violation &#8212; 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Investor Lawyers Blog","twitter_description":"The SEC is ordering Morgan Stanley to pay $4 million for violating the market access rule when it was unable to stop a rouge trader's behaviour.","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-fined-4m-by-the\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-fined-4m-by-the\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Morgan Stanley Fined $4M by the SEC for Market Access Rule Violation","datePublished":"2014-12-12T06:00:00+00:00","dateModified":"2022-03-11T19:34:29+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-fined-4m-by-the\/"},"wordCount":513,"articleSection":["Financial Firms","Morgan Stanley","Securities and Exchange Commission"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-fined-4m-by-the\/","url":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-fined-4m-by-the\/","name":"Morgan Stanley Fined $4M for Market Access Rule Violation &#8212; 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