{"id":5945,"date":"2016-03-21T00:00:00","date_gmt":"2016-03-21T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2016\/03\/financial_firms_and_securities"},"modified":"2022-05-17T14:03:23","modified_gmt":"2022-05-17T19:03:23","slug":"financial-firms-and-securities","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/financial-firms-and-securities\/","title":{"rendered":"Financial Firms and Securities Cases: BNY Mellon to Pay $3M Over Computer Glitch that Affected Mutual Funds, Wedbush Fined $675K by FINRA and Nasdaq, and Triad Advisers Settles UIT Charges"},"content":{"rendered":"<h2><strong>BNY Mellon to Pay Massachusetts $3M Over Computer Problem That Impacted Mutual Funds <\/strong><\/h2>\n<p>Bank of New York Mellon (BK) will pay $3 million to the state of Massachusetts to resolve a probe that found that a computer glitch did not calculate net asset values for over 1,000 mutual funds. Although the bank hired SunGard InvestOne to calculate these values, there was one-weekend last year when a malfunction occurred.<\/p>\n<p>The Massachusetts Securities Division conducted an investigation and discovered that BNY Mellon lacked a back-up plan to deal with such a malfunction. Because of this, non-uniform and untimely information was sent to clients and funds. As Secretary of the Commonwealth William F. Galvin noted, it is the job of financial institutions like BNY Mellon to oversee third-party vendors and put into place a back-up plan in the event a vendor\u2019s system fails. The bank says that in the wake of the outage, it took action to protect client interests and ensure that the daily net asset values were issued.<\/p>\n<p>BNY Mellon said that it has since made investors and the funds that sustained losses because of the computer error whole. The bank has made changes to supervisory procedures.<\/p>\n<h2><strong>WedBush to Pay $675K Fine to Nasdaq and FINRA over Trading and Clearing Errors Involving Exchange-Traded Funds <\/strong><\/h2>\n<p>Wedbush Securities Inc. will pay a $675K fine to the Nasdaq Stock Market and the Financial Industry Regulatory Authority Inc. over clearing and trading mistakes involving redemption and trading activities related to leveraged ETFs. Wedbush served as Scout Trading, LLC\u2019s clearing firm.<\/p>\n<p>According to FINRA, from 1\/10 to 2\/12, Scout Trading was not long enough in the shares that made up the redemption orders. Scott Trading turned in more than 250 naked redemption orders via Wedbush. These involved nearly a dozen ETFS that totalled over 295 million shares. This activity and ETF short-selling on the second market by Scout Trading led to Wedbush\u2019s failure to deliver on a number of occasions. (This could have led to a naked short sale in which the seller does not arrange to borrow the securities in a manner timely enough for the buyer to receive the delivery within the standard three days.)<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/financial-firms-and-securities\/#more-5945\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>BNY Mellon to Pay Massachusetts $3M Over Computer Problem That Impacted Mutual Funds Bank of New York Mellon (BK) will pay $3 million to the state of Massachusetts to resolve a probe that found that a computer glitch did not calculate net asset values for over 1,000 mutual funds. Although the bank hired SunGard InvestOne [&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":[4020,4023,3752,3739,3776,3799,3985],"tags":[3604,3605,2510],"class_list":["post-5945","post","type-post","status-publish","format-standard","hentry","category-bank-of-new-york-mellon-corp","category-exchange-traded-funds","category-financial-firms","category-finra","category-finra-settlements","category-mutual-funds","category-wedbush-securities","tag-triad-advisers","tag-uits","tag-unit-investment-trusts"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>BNY Mellon to Pay $3M Over Computer Glitch that Affected Mutual Funds | Investor Lawyers Blog<\/title>\n<meta name=\"description\" content=\"BNY Mellon pays $3M to Massachusetts to resolve a probe that found that a computer glitch did not calculate net asset values for over 1,000 mutual funds.\" \/>\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\/financial-firms-and-securities\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"BNY Mellon to Pay $3M Over Computer Glitch that Affected Mutual Funds | Investor Lawyers Blog\" \/>\n<meta name=\"twitter:description\" content=\"BNY Mellon pays $3M to Massachusetts to resolve a probe that found that a computer glitch did not calculate net asset values for over 1,000 mutual funds.\" \/>\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=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"BNY Mellon to Pay $3M Over Computer Glitch that Affected Mutual Funds | Investor Lawyers Blog","description":"BNY Mellon pays $3M to Massachusetts to resolve a probe that found that a computer glitch did not calculate net asset values for over 1,000 mutual funds.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/financial-firms-and-securities\/","twitter_card":"summary_large_image","twitter_title":"BNY Mellon to Pay $3M Over Computer Glitch that Affected Mutual Funds | Investor Lawyers Blog","twitter_description":"BNY Mellon pays $3M to Massachusetts to resolve a probe that found that a computer glitch did not calculate net asset values for over 1,000 mutual funds.","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\/financial-firms-and-securities\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/financial-firms-and-securities\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Financial Firms and Securities Cases: BNY Mellon to Pay $3M Over Computer Glitch that Affected Mutual Funds, Wedbush Fined $675K by FINRA and Nasdaq, and Triad Advisers Settles UIT Charges","datePublished":"2016-03-21T05:00:00+00:00","dateModified":"2022-05-17T19:03:23+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/financial-firms-and-securities\/"},"wordCount":636,"keywords":["Triad Advisers","UITs","Unit Investment Trusts"],"articleSection":["Bank of New York Mellon Corp.","Exchange Traded Funds","Financial Firms","FINRA","FINRA Settlements","Mutual Funds","Wedbush Securities"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/financial-firms-and-securities\/","url":"https:\/\/www.investorlawyers.com\/blog\/financial-firms-and-securities\/","name":"BNY Mellon to Pay $3M Over Computer Glitch that Affected Mutual Funds | Investor Lawyers Blog","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2016-03-21T05:00:00+00:00","dateModified":"2022-05-17T19:03:23+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"BNY Mellon pays $3M to Massachusetts to resolve a probe that found that a computer glitch did not calculate net asset values for over 1,000 mutual funds.","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/financial-firms-and-securities\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/financial-firms-and-securities\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/financial-firms-and-securities\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Financial Firms and Securities Cases: BNY Mellon to Pay $3M Over Computer Glitch that Affected Mutual Funds, Wedbush Fined $675K by FINRA and Nasdaq, and Triad Advisers Settles UIT Charges"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards &amp; Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards &amp; Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards &amp; Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-1xT","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=5945"}],"version-history":[{"count":1,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5945\/revisions"}],"predecessor-version":[{"id":27802,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5945\/revisions\/27802"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=5945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=5945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=5945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}