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Post by gwb on Oct 27, 2014 19:21:37 GMT -5
Hopefully our Naked Short level will begin to disappear !
www.finra.org/Newsroom/NewsReleases/2014/P601399
FINRA Fines Merrill Lynch a Total of $6 Million for Reg SHO Violations and Supervisory Failures
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that it has censured and fined Merrill Lynch Professional Clearing Corp. (Merrill Lynch PRO) $3.5 million for violating Regulation SHO, an SEC rule that established a regulatory framework to govern short sales and prevent abusive naked short selling. FINRA also censured and fined its affiliated broker-dealer, Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch), $2.5 million for failing to establish, maintain and enforce supervisory systems and procedures related to Regulation SHO and other areas.
In addition to curtailing naked short selling, among other things, Regulation SHO also aims to reduce the number of instances in which sellers fail to timely deliver securities. Regulation SHO requires a firm to timely "close out" any fail-to-deliver positions by borrowing or purchasing securities of like kind and quantity. Additionally, Reg SHO permits firms to reasonably allocate fail-to-deliver positions to its broker-dealer clients that caused or contributed to the firm's fail-to-deliver position.
FINRA found that from September 2008 through July 2012, Merrill Lynch PRO did not take any action to close out certain fail-to-deliver positions, and did not have systems and procedures in place to address the close-out requirements of Regulation SHO for the majority of that period. FINRA also found that from September 2008 through March 2011, Merrill Lynch's supervisory systems and procedures were inadequate and improperly permitted the firm to allocate fail-to-deliver positions to the firm's broker-dealer clients based solely on each client's short position without regard to which clients caused or contributed to Merrill Lynch's fail-to-deliver position.
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Post by vissertrades on Oct 27, 2014 19:44:55 GMT -5
I hope more thugs get fined too. I wonder who gave them ftd data for mnkd to investigate? Hmmm!
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Post by kc on Oct 27, 2014 20:04:17 GMT -5
Maybe we all need to write, email or fax the writer of this press release. Perhaps best by certified mail so there is a way to track they received it.
For Release: Contacts: October 27, 2014 Michelle Ong (202) 728-8464 Nancy Condon (202) 728-8379 Merrill Lynch Professional Clearing Corp. and Merrill Lynch, Pierce, Fenner & Smith Incorporated Action
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Post by vissertrades on Oct 27, 2014 20:21:21 GMT -5
It was a rhetorical question!
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Post by kc on Oct 27, 2014 20:31:48 GMT -5
No justice since this went on from 2008 until 2012 .
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Post by jpg on Oct 27, 2014 22:19:12 GMT -5
If they made 50 million by these types of schemes this could simply be seen as the cost of doing business. The regulator takes a small cut once and a while and it's business as usual...
Hopefully I am wrong saying this and that this is a new 'getting tough with fraud' warning shot to market makers. Going after a big player is already a step in the right direction.
JPG
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Post by vissertrades on Oct 28, 2014 10:22:25 GMT -5
Hmmm, belle_stalkee • 10 minutes ago Flag 1users liked this postsusers disliked this posts0Reply Mnkd-Bank of America relationship www.finra.org/Newsroom/NewsReleases/2014/P601399Mannkind loaned Bank Of America eight million shares until 2015 to establish a position making market with the company. Merrill Lynch is Bank of America's brokerage arm. Historically Mannkind shares have been heavily shorted with frequent failure to deliver events. More than likely Mannkind shares were part of the cause for the above penalty. Should Mannkind abrogate its agreement with Bank of America and demand immediate return of the eight million shares for violating the SHO regulation with those shares?
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Post by otherottawaguy on Oct 28, 2014 11:11:16 GMT -5
Too bad they probably made 10 time the fine(guess) in profits.
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