Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Finra Attacks Over Naked ETF Redemptions Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, March 22, 2016

Finra Attacks Over Naked ETF Redemptions

Reported by Neil Anderson, Managing Editor

Finra just fined a clearing firm $675,000 for its role in a naked ETF redemption scandal. The case is the first of its kind from the self-regulatory agency.

Thomas Gira
Finra
Executive Vice President and Head of Market Regulation
Yesterday Thomas Gira, executive vice president and head of market regulation at Finra, unveiled the censuring of Wedbush Securities. The scandal centers around a Wedbush broker-dealer client, Scout Trading. As an authorized participant, Scout could create and destroy ("redeem" in industry speak) ETF shares, and Finra and the Nasdaq claim that, between January 2010 and March 2012, Scout "routinely submitted 'naked' redemption orders in ETFs to Wedbush, meaning Scout Trading was insufficiently long in the ETF shares comprising the redemption orders."

MFWire could not immediately reach a Wedbush spokesperson for comment on the settlement.

The Wedbush settlement comes a year after Nasdaq censured Scout, to the tune of a $3-million fine.

As is often the case, both Wedbush in the new case and Scout in the one a year ago "neither admitted nor denied the charges" as part of their settlements.

Just how big was the scandal? Finra estimates that, over the two-year period in question, "Scout Trading submitted at least 255 naked redemption orders through Wedbush in 11 ETFs, totaling over 295 million shares." 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use