The Financial Industry Regulatory Authority (FINRA) reports that it has fined Cantor Fitzgerald & Co. $2 million for regulation SHO violations and supervisory failures spanning a period of at least five years. The SEC adopted regulation SHO to “address concerns regarding persistent failures to deliver and potentially abusive ‘naked’ short selling, e.g., the sale of… Read More >>
BB&T Securities Settles SEC Charges of Misleading Clients
BB&T Securities and the SEC have settled charges that a firm acquired by BB&T’s parent company allegedly misinformed advisory clients that they were getting discounted full-service brokerage services internally “while significantly less expensive options were available externally,” according to the SEC. Ultimately, the agreement requires BB&T Securities to return “more than $5 million to retail… Read More >>
FINRA Named as the New CAT Operator
The backers of the big data consolidated audit trail (CAT) have selected the Financial Industry Regulatory Authority (FINRA), the self-regulatory organization (SRO), to be the next plan processor for the CAT system, replacing Thesys Technologies, which was acting as Thesys CAT. Late last month, news broke that Thesys CAT was being phased out of the plan… Read More >>
Cyber Startup Spared Penalty in Unregistered ICO Case
Gladius Network, a cybersecurity vendor whose services are based on blockchain technology, conducted an unregistered initial coin offering (ICO) but later reported its actions to the SEC, agreed to compensate ICO investors, and is registering the ICO tokens as a class of securities — underscoring the SEC’s assertion that digital tokens must conform to securities… Read More >>
Deloitte Japan Pays $2M to Settle Auditing Charges
The SEC reports that Deloitte Touche Tohmatsu LLC, aka Deloitte Japan, will be censured and pay $2 million to settle charges that it issued audit reports for an audit client while several employees “maintained bank accounts with the client’s subsidiary,” in violation of SEC audit independence rules. Deloitte Japan is a member firm of Deloitte… Read More >>
Thesys Out as Plan Processor for CAT Project
The ambitious consolidated audit trail (CAT) industry project has suddenly moved into a new chapter with the revelation late last week that Thesys Technologies, acting as Thesys CAT, will be phased out as the plan processor for the SEC-mandated big data initiative. A transition is underway to designate a new plan processor to collect every… Read More >>
Traiana’s HKEX OTC Clear Link Targets FX Deliverables
New Link Targets FX Deliverables Traiana, an infrastructure services vendor for trading and risk management, is providing direct central clearing connectivity to the Hong Kong Exchanges (HKEXs) and Clearing’s OTC Clearing Hong Kong (OTC Clear), officials say. The news means that market participants can now access the OTC Clear service for USD/CNH and USD/HKD FX… Read More >>
Temenos Offers NAV Oversight via Bloomberg Terminal
Temenos Collaborates with Bloomberg Banking software vendor Temenos is collaborating with Bloomberg to deliver contingency Net Asset Value (NAV) calculations to buy-side institutions via the Bloomberg terminal. Temenos is making its Multifonds Global Accounting product accessible via the Bloomberg Terminal, so that it will operates with data, analytics, and other investment workflow services from Bloomberg,… Read More >>
JPMorgan Pays $135 Million to Settle ADR Woes
JPMorgan Chase Bank N.A. is paying more than $135 million in total monetary relief to settle the SEC’s allegations that it improperly handled “pre-released” American Depositary Receipts (ADRs), an industry practice that the bank says it has stepped away from. The SEC’s actions against JPMorgan constitute the “eighth action against a bank or broker, and… Read More >>
SEC, CFTC Brace for Extended Government Shutdown
As the U.S. gets back to work after the holidays, SEC and CFTC officials are preparing for an ongoing and widening shutdown of the federal government that may affect the law enforcement and litigation efforts of the regulators. When the shutdown began on Dec. 22, initially nine federal departments and agencies were impacted by the… Read More >>
