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….
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