Posted On: 06/17/2014 8:48:25 AM
Post# of 4611
NAKED SHORT SELLING...Wedbush allowed outside firms to directly trade on exchanges with lax oversight, according to the SEC.
From July 2011 until at least January 2013, Los Angeles-based Wedbush allowed dozens of firms with thousands of traders to place transactions “that did not flow through any Wedbush systems before reaching exchanges and other trading venues in the U.S.,” according to the complaint. If true, that would be a violation of rules that require broker-dealers such as Wedbush to monitor their clients’ buying and selling.
Andrew Ceresney, the SEC’s enforcement director, said today that Wedbush clients engaged in a variety of illegal behavior, including wash trades and violations of short-selling rules. The traders were based both inside and outside the U.S., he said.
“Wedbush failed to adopt and implement risk management controls that were reasonably designed to ensure compliance with applicable regulatory requirements -- such as those for preventing naked short sales, wash trades, manipulative layering and money laundering,” according to the SEC.
http://www.bloomberg.com/news/2014-06-06/sec-...rules.html
Thanks to made in Detroit
From July 2011 until at least January 2013, Los Angeles-based Wedbush allowed dozens of firms with thousands of traders to place transactions “that did not flow through any Wedbush systems before reaching exchanges and other trading venues in the U.S.,” according to the complaint. If true, that would be a violation of rules that require broker-dealers such as Wedbush to monitor their clients’ buying and selling.
Andrew Ceresney, the SEC’s enforcement director, said today that Wedbush clients engaged in a variety of illegal behavior, including wash trades and violations of short-selling rules. The traders were based both inside and outside the U.S., he said.
“Wedbush failed to adopt and implement risk management controls that were reasonably designed to ensure compliance with applicable regulatory requirements -- such as those for preventing naked short sales, wash trades, manipulative layering and money laundering,” according to the SEC.
http://www.bloomberg.com/news/2014-06-06/sec-...rules.html
Thanks to made in Detroit
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