Tue, Jul 26, 2016
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. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. HFR: Hedge funds post strong gains in mid-July as markets recover from Brexit losses[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted strong gains through mid-July as the equity markets continued the recovery from Brexit losses. The HFRX Market Directional Index gained +2.17% (+4.22% YTD) and the HFRX Global Hedge Fund Index gained +1.03% through mid-month (+0.19%

  4. News Briefs - Carlyle goes on trial for a financial-crisis meltdown, Private equity and venture capital outperformed public markets in 2015, Pippa Middleton gets engaged to hedge fund manager James Matthews[more]

    Carlyle goes on trial for a financial-crisis meltdown Carlyle Group co-founder Bill Conway was in court on this small island last week recounting one of the most bruising episodes in his private-equity firm’s history: the 2008 collapse of mortgage-bond fund Carlyle Capital Corp. Carlyle

  5. …And Finally - Two men fall off cliff playing Pokemon Go[more]

    From BizarreNews.com: Two men who fell from a seaside cliff north of San Diego told authorities they became distracted while playing augmented reality game Pokemon Go. Encinitas fire Battalion Chief Robbie Ford said one of the men fell about 50 feet down the bluff in Encinitas while the other man fe