17 January 2018
visit www.ebaday.com

Icap pays $25 million SEC penalty to cover fake trading charges

21 December 2009  |  11602 views  |  0 Financial numbers

Interdealer broker Icap is to pay $25 million in settlement to the US Securities and Exchange Commission over charges that it displayed fake trades on its screens to encourage customer dealing.

The settlement follows a four-year probe by the US watchdog into the activities of dealers operating on its mortgage-backed securities desk.

The SEC found that Icap displayed fictitious flash trades also known as 'bird' trades on its screens in order to lure customers into making actual trades.

Inter-dealer brokers with greater trade activity on their screens can attract customer orders and earn more commissions than those whose screens reflect little or no trading activity.

Alongside the $25 million penalty, the SEC additionally charged five Icap brokers for "aiding and abetting the firm's fraudulent conduct" and two senior executives for supervisory failings. The individuals have each agreed to pay penalties to settle the SEC's charges.

Lorin Reisner, deputy director of the SEC's Division of Enforcement, comments: "Icap engaged in deceptive practices that violated the legal and professional standards required of market participants; our action today demonstrates zero tolerance for such conduct."

In settling the charges, Icap also has agreed to retain an independent consultant to review its controls, trading records and compliance mechanisms across all of its dealings in the US marketplace.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Icap hires Beeston to spearhead post-trade expansion

Icap hires Beeston to spearhead post-trade expansion

16 November 2009  |  12490 views  |  0 comments
Three more banks join CLS/Icap FX joint venture

Three more banks join CLS/Icap FX joint venture

27 July 2009  |  9379 views  |  0 comments
Icap abandons exchange project as Lyall exits

Icap abandons exchange project as Lyall exits

19 March 2009  |  9374 views  |  0 comments
Accenture wins Icap outsourcing deal

Accenture wins Icap outsourcing deal

11 June 2008  |  9441 views  |  0 comments
Icap profit jumps 31%; eyes acquisitions

Icap profit jumps 31%; eyes acquisitions

20 May 2008  |  6870 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.capgemini.comvisit www.thomsonreuters.info

Top topics

Most viewed Most shared
Buffett rubbishes cryptocurrencies; South Korea preps exchange crackdownBuffett rubbishes cryptocurrencies; South...
11560 views comments | 15 tweets | 17 linkedin
BNP Paribas Asset Management completes fund transaction blockchain testBNP Paribas Asset Management completes fun...
10168 views comments | 14 tweets | 33 linkedin
Europe begins Open Banking era in subdued styleEurope begins Open Banking era in subdued...
9619 views comments | 32 tweets | 34 linkedin
Crypto mining threatened by power capacity concernsCrypto mining threatened by power capacity...
9483 views comments | 17 tweets | 18 linkedin
Exchanges call for global fintech standardsExchanges call for global fintech standard...
9205 views comments | 17 tweets | 13 linkedin

Featured job

Competitive base + commission
New York City, NY - USA

Find your next job