The regulatory arm of the New York Stock Exchange has levied a
total of $590,000 in fines against four firms for trading violation
including those related to odd-lot orders.
The firms consented to the findings without admitting or denying
guilt.
Fortis Clearing Americas LLC was fined $225,000 after a NYSE
hearing officer in 2007 found that it submitted some inaccurate or
incomplete data from late 2006 through mid-2007 and on several
occasions from 2006 through 2007 included in nonmember
broker-dealer customer's odd-lot orders. Also, the firm failed to
supervise and implement adequate controls relating such orders.
BNY ConvergEx Solutions LLC was fined $190,000 on NYSE findings
that the firm from November 2006 through March 2009 introduced
pre-opening odd-lot market orders that should have been aggregated
into lots of 100 shares or more and failed to supervise and
implement adequate controls relating to such orders.
E*Trade Financial Corp. (ETFC) was fined $115,000 on findings
that thousands of pre-opening odd-lot market orders that could have
been rounded, as well as failing to supervise and implement
adequate controls.
Merrill Lynch, Pierce, Fenner & Smith Inc. was fined $60,000
on findings that the firm in October 2007, in about 581 instances,
engaged in violative trades for a nonmember customer. Also, after
being informed of the concerns related to odd-lot trades, it failed
to reasonably supervise and implement adequate controls. Merrill is
now owned by Bank of America Corp. (BAC).
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com