{"id":5811,"date":"2015-06-02T00:00:00","date_gmt":"2015-06-02T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/06\/merrill_lynch_to_settle_shorts"},"modified":"2015-06-02T00:00:00","modified_gmt":"2015-06-02T05:00:00","slug":"merrill-lynch-to-settle-shorts","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/merrill-lynch-to-settle-shorts\/","title":{"rendered":"Merrill Lynch to Settle Short-Selling Case for $11M, Admits to Wrongdoing"},"content":{"rendered":"

The SEC said that Merrill Lynch (MER)<\/a> would pay $11 million to resolve allegations of short-selling-related noncompliance. The regulator said that the wirehouse executed short sales in certain securities when the supply for this type of transaction was restricted.<\/p>\n

Customers frequently ask brokerage firms to \u201clocate\u201d stock that can be used for short selling. The financial firms generate easy-to-borrow lists made up of the stock they believe is accessible for such locates. However, contends the SEC, from January 2008 through January 2014 Merrill used information that was dated to create these ETB lists.<\/p>\n

For example, there were times when certain securities that were placed on the ETB list in the morning were no longer as easily available for borrowing later in the trading day. Yet Merrill\u2019s platforms were set up so that they continued to process short sale orders according to the now-dated list\u2014even as firm personnel appropriately stopped using the list for sourcing locates when certain shares\u2019 availability had become restricted. <\/p>\n

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

The SEC said that Merrill Lynch (MER) would pay $11 million to resolve allegations of short-selling-related noncompliance. The regulator said that the wirehouse executed short sales in certain securities when the supply for this type of transaction was restricted. Customers frequently ask brokerage firms to \u201clocate\u201d stock that can be used for short selling. The […]<\/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":[3752,3800,3760,3795,3761,3973],"tags":[],"class_list":["post-5811","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-merrill-lynch","category-sec-enforcement","category-sec-settlements","category-securities-and-exchange-commis","category-short-selling"],"yoast_head":"\nMerrill Lynch to Settle Short-Selling Case for $11M, Admits to Wrongdoing — Investor Lawyers Blog — June 2, 2015<\/title>\n<meta name=\"description\" content=\"The SEC said that Merrill Lynch (MER) would pay $11 million to resolve allegations of short-selling-related noncompliance. 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