Thursday, 2 October 2014
Last updated 1 hour ago
Jan 27 2011 | 11:37am ET
Merrill Lynch has settled charges that its equity proprietary trading unit front-ran clients.
The firm, which has since been acquired by Bank of America, will pay $10 million to make the Securities and Exchange Commission allegations go away. Merrill did not admit or deny wrongdoing.
According to the SEC, Merrill's since-closed equity strategy desk received word of large customer orders before they were placed, allowing it make its own orders first. The regulator also accused Merrill of charging institutional and high-net worth investors hidden fees for "riskless principal trades."
In one case, a Merrill market-maker, using instant messager, gave the prop. trading desk word that an institutional client had placed an order to sell 40,000 shares of a pharmaceutical company.
BofA said the firm has since put in new policies to separate its proprietary trading teams from its sell-side teams.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...