The U.S. Senate has taken the first step in a rescue of a whistleblower program for the Commodities Futures Trading Commission (CFTC) via a bill that got unanimous bipartisan support and may lead to new funding for a program running out of money. Sen. Chuck Grassley (R-Iowa), who proposed the bill, says that if it… Read More >>
Do More to Stop Financial Crime: Study
More investment in better technology. Not surprisingly, that is one of the major improvements financial services firms need to make. Why, exactly? To “reduce the sector’s exposure to such monetary outlays as the aggregate $14.1 billion in penalties paid for non-compliance in 2020,” according to a May 2021 study by the ACAMS organization and Oliver… Read More >>
CFTC Penalizes Firm $500K via Wash Sales Case
SummerHaven Investment Management, a firm that acts as a commodity trading advisor (CTA) and commodity pool operator (CPO), has been penalized $500,000 by the CFTC on charges that it engaged in wash sales and other non-competitive transactions. The firm has also been charged with falling short in supervising these activities, according to the CFTC. The… Read More >>
Abel Noser to Acquire Competitor Trade Informatics
Abel Noser Bolsters Wares via Acquisition Brokerage Abel Noser Holdings is hoping to offer a comprehensive suite of trade analysis, compliance products, and agency-only brokerage technology services by acquiring competitor Trade Informatics LLC, officials say. Like Abel Noser, Trade Informatics provides equities trade cost analysis (TCA), officials say. Trade Informatics also offers the START systematic… Read More >>
T+1 Gets a Nod from SEC Chair Gensler
Gary Gensler, the new chair of the SEC, is provisionally endorsing the industry effort to shorten trade settlement time from T+2 to T+1 as evidenced by his recent testimony before the U.S. House Committee on Financial Services, overseen by Chairwoman Maxine Waters (D-CA). “I believe shortening the standard settlement cycle could reduce costs and risks… Read More >>
Biden Moves to Revamp the SEC & CFTC
President Joe Biden appears to be getting the SEC and CFTC that he wants after a bumpy transition period, and a rush of departures as the new team takes over. For starters, the Biden team has nominated Gary Gensler, the former chairman of the CFTC, to be the next chairman of the SEC. Gensler served… Read More >>
Is Your Back Office an Ugly Duckling?
(The pandemic-inspired market rally rollercoasters and the recent retail vs. institutional trading battles focused on GameStop Corp. and AMC Entertainment Holdings have underscored the operational drawbacks of volatility. The ripple effects are top of mind for Daniel Carpenter, head of regulation at Meritsoft, a provider of specialized cash and tax management solutions — receivables and… Read More >>
Yellen’s Mission Reaches Beyond the Pandemic
Late last month, Janet L. Yellen was sworn in as the 78th Secretary of the U.S. Department of the Treasury by Kamala D. Harris, the newly inaugurated vice president of the U.S. Yellen and Harris are pioneers and it was a breakthrough amid a great deal of turmoil. But this glass-ceiling shattering moment in history… Read More >>
FINRA Alleges Worden Excessively Traded Customer Accounts
FINRA, the U.S. Financial Industry Regulatory Authority, has penalized Worden Capital Management LLC “more than” $1.2 million in restitution, plus a fine of $350,000 on charges that the firm “excessively traded” customer accounts. Worden has agreed to pay. In addition, the firm must also “retain an independent consultant to conduct a comprehensive review of the relevant… Read More >>
FinCEN Urges Banks to Share More Crime Info
The director of the Financial Crimes Enforcement Network (FinCEN) at the United States Department of the Treasury wants to make it easier for banks to share information about real and potential financial crimes. Citing a provision of the USA Patriot Act, Director Kenneth A. Blanco has put together a fact sheet and addressed the sharing… Read More >>
