Fri, Mar 27, 2015
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner