A PYMNTS Company

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.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    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

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.