{"id":5798,"date":"2015-06-28T00:00:00","date_gmt":"2015-06-28T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/06\/goldman_sachs_to_pay_7m_over_m"},"modified":"2022-03-10T16:37:27","modified_gmt":"2022-03-10T22:37:27","slug":"goldman-sachs-to-pay-7m-over-m","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-to-pay-7m-over-m\/","title":{"rendered":"Goldman Sachs to Pay $7M Over Market Access Rule Violation Allegations"},"content":{"rendered":"<p>Goldman Sachs (GS) has agreed to pay a $7 million penalty to settle SEC charges accusing the firm of violating the market access rule on August 20, 2013.  According to the SEC, on that day, in under an hour, the firm mistakenly executed thousands of options contracts executions resulting in incorrect orders. <\/p>\n<p>The regulator said that Goldman did not have the adequate safeguards in place that could have prevent it from accidentally sending about 16,000 options orders that were wrongly priced to different options exchanges.  According to the SEC, the mistaken transactions occurred after Goldman put into place new electronic trading functionality that was supposed to match client orders with internal options orders. <\/p>\n<p>Because of a configuration error in the software, contingent orders were turned into live orders. All of the orders were given a $1 price. <\/p>\n<p>The orders were sent to options exchanges during pre-market trading. Minutes after regular market trading opened, about 1.5 million options contracts were executed.  Because of the rules regarding erroneous options trades, many of the executed trades received price adjustments or were cancelled. The losses might have otherwise cost the firm $500 million.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/goldman-sachs-to-pay-7m-over-m\/#more-5798\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Goldman Sachs (GS) has agreed to pay a $7 million penalty to settle SEC charges accusing the firm of violating the market access rule on August 20, 2013. According to the SEC, on that day, in under an hour, the firm mistakenly executed thousands of options contracts executions resulting in incorrect orders. The regulator said [&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":[3752,3947,3760,3795,3761],"tags":[],"class_list":["post-5798","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-goldman-sachs","category-sec-enforcement","category-sec-settlements","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>Goldman Sachs to Pay $7M Over Market Access Rule Violation Allegations &#8212; Investor Lawyers Blog &#8212; June 28, 2015<\/title>\n<meta name=\"description\" content=\"Goldman Sachs (GS) has agreed to pay a $7 million penalty to settle SEC charges accusing the firm of violating the market access rule on August 20, 2013. &#8212; June 28, 2015\" \/>\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\/goldman-sachs-to-pay-7m-over-m\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Goldman Sachs to Pay $7M Over Market Access Rule Violation Allegations &#8212; Investor Lawyers Blog &#8212; June 28, 2015\" \/>\n<meta name=\"twitter:description\" content=\"Goldman Sachs (GS) has agreed to pay a $7 million penalty to settle SEC charges accusing the firm of violating the market access rule on August 20, 2013. &#8212; June 28, 2015\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Goldman Sachs to Pay $7M Over Market Access Rule Violation Allegations &#8212; 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