On Aug. 14, IEX proposed rule crumbling quote fee threshold. Revised the threshold for imposition of the crumbling quote remove fee (CQRF). More narrowly tailor to activity that is indicative of a deliberate trading strategy that may adversely affect execution quality on the Exchange, in rulebook. Current Threshold IEX charges CQRF to orders that remove…
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DoJ $350mn Cocoa Trade Fraud
On Aug. 13, 2018, DoJ announced sentencing for CEO, of 36-months in prison. As well as 36-month sentence Johnson received a two-year supervised release. Johnson Jnr. and Reich, pled guilty to participation in scheme to commit fraud. Others are scheduled to be sentenced on Sep. 17 and 21, 2018, respectively.
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FINRA Securities Futures Risk
On Aug. 10, 2018, FINRA issued notice on SEC approval of future risk statement. Implementation date of updated statement and 2018 supplement, Sep, 5, 2018.
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UK ICO Emma’s Diary £140k Fine
On Aug. 9, ICO fine for selling of personal data to a political party. ICO fine Lifecycle Marketing (Mother and Baby) ltd, aka Emma's Diary, £140,000. Followed interim report on data analytics for political campaigning, see #45157. ICO Findings Illegally collected, sold personal information belonging to more than 1mn people. Data broking company, which provides advice…
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SEC Fine Broker AML Reports
On Aug. 8, 2018, SEC issued no-action relief under S.206(4) and Rule 206(4)-3). Allows investment adviser to pay Schwab cash for solicitation of advisory clients. SEC enforcement would otherwise stop IAs making payment directly or indirectly. Background: On Jul. 9, SEC fined Schwab for not reporting IA suspicious trades. Charles Schwab settled charges it failed…
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SEC Sonos False Revenue Fine
On Aug. 7, SEC fined Sonus Networks for false revenue projections. Sonus Networks and executives agreed to pay over $1.9mn to settle charges. Alleged Violations Former Sonus CFO, Mark Greenquist, was found to be aware of red flags which undermined the company’s first quarter 2015 announced estimates of revenue. Warnings included Sonus pulling forward deals…
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