ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

MS Morgan Stanley

93.93
0.43 (0.46%)
Last Updated: 14:16:14
Delayed by 15 minutes
Share Name Share Symbol Market Type
Morgan Stanley NYSE:MS NYSE Common Stock
  Price Change % Change Share Price High Price Low Price Open Price Shares Traded Last Trade
  0.43 0.46% 93.93 94.205 93.49 93.75 520,022 14:16:14

Merrill Lynch to Pay $12.5 Million Fine for Mini-Flash Crashes

26/09/2016 5:50pm

Dow Jones News


Morgan Stanley (NYSE:MS)
Historical Stock Chart


From Mar 2019 to Mar 2024

Click Here for more Morgan Stanley Charts.

Merrill Lynch has agreed to pay a $12.5 million fine for maintaining ineffective trading controls that led to at least 15 mini-flash crashes between late 2012 and mid-2014.

The Securities and Exchange Commission said its investigation found the internal controls set to prevent erroneous trading orders at Merrill Lynch, the brokerage unit of Bank of America Corp., were set at levels so high that it rendered them ineffective.

A representative from Merrill Lynch couldn't be reached for comment.

The erroneous orders that passed through Merrill Lynch's internal controls caused certain stock prices to skid and then suddenly recover within seconds, the SEC said. For example, Merrill Lynch applied a limit of 5 million shares per order for one stock that traded about 79,000 shares a day, according to the SEC. Another order led to a nearly 3% decline in Google's stock in less than a second in April 2013.

Robert Cohen, co-chief of the SEC Enforcement Division's Market Abuse Unit, said the penalty was the highest-ever SEC fine for violations of the Market Access Rule. Other previous cases include a $4 million penalty paid by Morgan Stanley in 2014 and a $12 million penalty paid by Knight Capital in 2013.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

 

(END) Dow Jones Newswires

September 26, 2016 12:35 ET (16:35 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.

1 Year Morgan Stanley Chart

1 Year Morgan Stanley Chart

1 Month Morgan Stanley Chart

1 Month Morgan Stanley Chart

Your Recent History

Delayed Upgrade Clock