RBC (RY) Refutes Allegations Made by CTFC; Says Agency Aware of Trades Since 2005
- Top 10 News for 5/18 - 5/22: Fed Rate Hike Pushed Back; Icahn Calls for More Apple Buybacks; Big Banks Settle FX Probe
- Yellen Says Rate Hike at Some Point This Year 'Appropriate'
- Deere & Co. (DE) Posts Q2 EPS of $2.03; Lowers Equipment Sales Outlook for FY15
- Hewlett-Packard (HPQ) Tops Q2 EPS by 1c; Guides Q3 EPS to Low-Side of Expectations
- Foot Locker (FL) Tops Q1 EPS by 7c
In response to the CFTC's allegations against RBC (NYSE: RY) for trading activity that the CFTC reviewed and had full knowledge of, RBC has these comments:
- The CFTC has been aware of these transactions since 2005. These transactions were done in accordance with market terms, regulations and process.
- This is not a financially material event to RBC but we do take this situation seriously and intend to vigorously defend our reputation.
- Before we made a single trade, we proactively contacted the exchange to seek its guidance. These trades were fully documented, transparent, and reviewed by both the CFTC and the exchanges, and for the next several years were monitored by them. RBC's trading was permissible in 2005, was reviewed six months later by the CFTC and encountered no objection, and it is permissible today under the CFTC's published guidance.
- Given no objection to the trading activity by either the exchange or the CFTC in 2005, it is absurd to now claim these trades were either fictitious or wash sales. This lawsuit is meritless.
- The block trades in question were entered into by independent RBC legal entities with the intent to establish genuine, bona fide positions, based on the CFTC's long-standing regulatory guidance. They were executed at competitive market pricing and no market participants suffered any negative impact, nor has the CFTC alleged any pricing irregularities.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Costar Group (CSGP) Subsidiary Sues RealMassive Over Alleged Copyright Infringement
- Bristol-Myers Squibb (BMY) Receives Positive EMA CHMP Opinion on Nivolumab in Metastatic Squamous NSCLC
- WiLAN (WILN) Announces Ericsson (ERIC) Granted Motion for Summary Judgement in Patent Case
Create E-mail Alert Related CategoriesCorporate News, Litigation
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!