Thu, Oct 23, 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

Banner

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t