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US: Merrill Lynch agrees to $12.5m fine

By  |  September 27, 2016

Merrill Lynch agreed to pay $12.5 million to settle allegations that it failed to stop 15 large, faulty trades that allegedly caused stocks, including Google Inc. and Diageo PLC, to move abruptly, the Securities and Exchange Commission said.

The SEC said the trades that are part of the allegations occurred between 2012 and 2014 because internal controls to prevent erroneous trading orders were set at such a high level that they were ineffective. The internal controls included limits on trading volume and other things.

A representative from Merrill Lynch said the erroneous trades were canceled by the relevant exchanges in most instances, and the company is “not aware of any client who was harmed as a result.” He added the company believes it complies with regulators’ expectations. The company neither admitted nor denied the findings, according to the SEC settlement.

Full Content: The Wall Street Journal

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