Tuesday, June 5, 2012

Morgan Stanley fined $5M for crooked trades






Reuters reports that Morgan Stanley agreed to pay $5 million to settle charges brought by the Commodity Futures Trading Commission that it executed unlawful noncompetitive trades, the agency said on Tuesday.  The bank executed, processed and reported off-exchange futures trades to the Chicago Mercantile Exchange and Chicago Board of Trade as exchanges for related positions (EFRPs) over an 18-month period from 2008 to 2009, according to the CFTC.

The EFRPs constituted "fictitious sales" because the futures trades were executed noncompetitively and not in accordance with exchange rules, the CFTC said….

Wait, wait...there's more at http://www.reuters.com/article/2012/06/05/us-morganstanley-cftc-idUSBRE8540UD20120605

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