Thu, Apr 17, 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. Opalesque Exclusive: European stock-picking fund up 19% YTD, bets on small caps’ high cash level[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Here is a European long/short equity fund that has been beating the odds since its 2008 inception by employing its own investment model, frequent company visits

  2. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  3. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  4. Opalesque TV: First Trust Advisors launches liquid alternatives platform[more]

    Bailey McCann, Opalesque New York: First Trust Advisors is launching a new liquid alternatives platform aimed at building on the companies existing alternative ETFs offering by adding hedged mutual funds. Senior Portfolio Managers Rob Guttschow and John Gambla recently sat down in an

  5. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo