Thu, Aug 21, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

BlackRock and JP Morgan pay penalty for fictitious sales in ten year spreads

Friday, March 09, 2012

Benedicte Gravrand, Opalesque Geneva – The U.S. Commodity Futures Trading Commission (CFTC) yesterday charged subsidiaries of BlackRock and JP Morgan for executing unlawful pre-arranged trades.

BlackRock Institutional Trust Company NA, a San Francisco-based investment manager owned by BlackRock Inc., a global investment firm with $3.5tln in assets, was charged "for engaging in prearranged trades that were non-competitively executed and fictitious sales in ten year U.S. Treasury Note Futures spreads on the Chicago Board of Trade (CBOT)," the CFTC said.

BlackRock will have to pay a $250,000 civil monetary penalty, after it was found that one of its employees, back in 2010 and on two occasions, traded so that BlackRock ended being on both sides of a ten year spread transaction. He executed his trades with the aim of crossing orders in ten year spreads by entering buy and sell orders with two different futures commission merchants (FCM) at around the same time. Both orders were for the same amount, one of which being "all or none." On one of the occasions, the same employee also took on pre-execution communications with someone at the FCM, so that the FCM would sell to the paired bid from BlackRock.

New York-based futures commission merchant J.P. Morgan Securities LLC, a subsidiary of JPMorgan Chase & ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Institutions – Texas Employees sets 2015 tactical plan for alternatives, CalPERS' real estate consultant cautions the pension fund's investment committee, Why Sunsuper likes hedge funds[more]

    Texas Employees sets 2015 tactical plan for alternatives From PIOnline.com: Texas Employees Retirement System will invest in up to four new hedge funds in the next fiscal year, which begins Sept. 1. Trustees approved 2015 tactical investment plans for the hedge fund, private equity and in

  2. Private equity follows hedge funds into reinsurance for long-term capital[more]

    From Artemis.bm: It’s not just hedge funds that are entering the insurance and reinsurance market in search of so-called long-term capital to put to work in their strategies, private equity firms targeting the space are also seeking opportunities to add assets under management. The entry of large pr

  3. North America – New York City’s next hot neighborhoods targeted with property funds[more]

    From Bloomberg.com: New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. and hedge

  4. Investing – George Soros bets $2bn on stock market collapse, Warren Buffett's Berkshire reveals Charter stake, cuts DirecTV, Hedge funds lusting to cash out of MGM, Top hedge fund managers are buying Ally Financial, Hedge funds dumped 5m Herbalife shares in Q2, Paulson & Co hedge fund ups Puerto Rico real estate bet, Netflix Inc., Citigroup Inc, Google Inc are top new picks in Tiger Management’s 13F[more]

    George Soros bets $2bn on stock market collapse From Newsmax.com: Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion. The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Inde

  5. Investors now net short S&P500 and increased Russell shorts, technicals suggest further selling[more]

    Komfie Manalo, Opalesque Asia: Market Neutral funds increased their market exposure to -1% net short from -6% net short last week, according to Bank of America Merrill Lynch’s Hedge Fund Monitor. The report also added