{"id":5776,"date":"2015-05-19T00:00:00","date_gmt":"2015-05-19T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/05\/morgan_stanley_to_pay_2m_for_v"},"modified":"2022-05-06T14:51:11","modified_gmt":"2022-05-06T19:51:11","slug":"morgan-stanley-to-pay-2m-for-v","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-to-pay-2m-for-v\/","title":{"rendered":"Morgan Stanley to Pay $2M for Violations Involving Short Sales and Short Interest Reporting"},"content":{"rendered":"

The Financial Industry Regulatory Authority is fining Morgan Stanley & Co. LLC (MS) $2M for violations involving short sale and short interest reporting rules. The violations purportedly took place over six years. The financial firm is also accused of not putting into place a supervisory system designed in a reasonable enough manner that it could identify and prevent such violations.<\/p>\n

Financial firms are supposed to report to the SRO on a regular basis their total short positions involving equity securities in proprietary firm and customer accounts. However, according to the self-regulatory organization, Morgan Stanley did not accurately and completely report such positions in certain securities that involved billions of shares. FINRA also said that the firm\u2019s supervisory system was deficient.<\/p>\n

Meantime, under U.S. Securities and Exchange Commission\u2019s Regulation SHO for regulating short sales, firms are supposed to aggregate their positions in a security to determine whether they are short or long. Through an aggregation unit, Regulation SHO lets firms track positions in a security separate from other positions at the firm and via certain trading desks or operations.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Financial Industry Regulatory Authority is fining Morgan Stanley & Co. LLC (MS) $2M for violations involving short sale and short interest reporting rules. The violations purportedly took place over six years. The financial firm is also accused of not putting into place a supervisory system designed in a reasonable enough manner that it could […]<\/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":[3752,3739,3776,3787,3973],"tags":[],"class_list":["post-5776","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-finra","category-finra-settlements","category-morgan-stanley","category-short-selling"],"yoast_head":"\nMorgan Stanley to Pay $2M for Violations Involving Short Sales and Short Interest Reporting — Investor Lawyers Blog — May 19, 2015<\/title>\n<meta name=\"description\" content=\"The Financial Industry Regulatory Authority is fining Morgan Stanley & Co. 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