Morgan Stanley (MS) Pays $5M to Settle Case Involving 'Fictitious Sales'
Tweet
Share
E-mailGet Alerts MS Hot Sheet
Join SI Premium – FREE
The US Commodity Futures Trading Commission ordered Morgan Stanley & Co. (NYSE: MS) to pay a $5 million civil penalty to settle charges for unlawful noncompetitive trades referred to as “fictitious sales.”
Over an 18-month period, Morgan Stanley reported numerous off-exchange futures trades to the CME (NYSE: CME) and CBOT as exchanges for related positions (EFRPs). Because the trades were executed non-competitively and not in accordance with exchange rules governing EFRPs, Morgan Stanley constituted “fictitious sales” which resulted in the reporting of non-bonafide prices, in violation of the CEA and CFTC regulations.
Over an 18-month period, Morgan Stanley reported numerous off-exchange futures trades to the CME (NYSE: CME) and CBOT as exchanges for related positions (EFRPs). Because the trades were executed non-competitively and not in accordance with exchange rules governing EFRPs, Morgan Stanley constituted “fictitious sales” which resulted in the reporting of non-bonafide prices, in violation of the CEA and CFTC regulations.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Boeing names Ryan Shedd as new SVP and controller
- enVVeno Medical (NVNO) files $100M mixed shelf
- Sigma Lithium resumes full operations after signing TAC agreement
Create E-mail Alert Related Categories
Corporate NewsRelated Entities
Morgan StanleySign 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!
