The SEC's order reveals that between April 2018 and May 2019, the former trader entered misleading orders on one side of the market with no intention of executing them—referred to as non-bona fide orders.
The Securities and Exchange Commission (SEC) has filed charges against TD Securities (USA) LLC for allegedly manipulating the U.S. Treasury cash securities market through a practice known as spoofing. The SEC also accused the firm of failing to adequately supervise its U.S. Treasuries trading desk head, who purportedly engaged in hundreds of illegal trades over a 13-month span.
The SEC's order reveals that between April 2018 and May 2019, the former trader entered misleading orders on one side of the market with no intention of executing them—referred to as non-bona fide orders. This strategy was aimed at securing better prices on legitimate orders placed simultaneously on the opposite side. After fulfilling the bona fide orders, the trader allegedly canceled the non-bona fide orders, resulting in profits for TD Securities.
“Manipulative and deceptive trading undermines the integrity of our markets,” said Mark Cave, Associate Director in the SEC’s Division of Enforcement. “Broker-dealers and other firms cannot ignore their employees’ manipulative conduct and must take meaningful steps to detect and prevent it. Today’s action results from our continuing commitment to combating illicit trading.”
The SEC's investigation found that TD Securities lacked proper oversight and failed to act on warnings regarding the trader's suspicious activities. In response to the findings, TD Securities has agreed to the SEC's order, admitting to violations of federal securities laws and inadequate supervision. As a result, the firm will cease any future violations, has been censured, and must pay $400,000 in disgorgement, along with $6.5 million in civil penalties.
In a related matter, TD Securities has entered a deferred prosecution agreement with the U.S. Department of Justice (DOJ), agreeing to pay over $15 million in total sanctions, including the $400,000 credit to the SEC. Additionally, the firm has consented to a $6 million fine from the Financial Industry Regulatory Authority (FINRA) to settle related allegations.
The SEC's investigation was led by Bobby Gray, Edward Patterson, and Devon Staren from the Division of Enforcement, with contributions from various staff members in the Division of Economic and Risk Analysis. The agency also acknowledges support from the DOJ's Fraud Section and FINRA.
THANK YOU FOR YOUR TIME
DISCLAIMER
The views and opinions expressed in this article are those of the authors and do not
necessarily reflect the official policy or position of The Steven Wick Blog. Any content provided by our bloggers or authors are of their opinion and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything.
If you decide to purchase any item using our authorized referral/affiliate links, be aware, we may receive a portion of the sales as commission, i.e. if you purchase a product/service.
To shop, select or click buttons, links or images, you will be redirected to product pages. Please, carefully research before you purchase. Feel free to share and leave a comment, we would love to hear from you. Your feedback is very important to us.
For more like this, music, literature, news, fashion, savvy political commentary, and fascinating features, sign up for the Steven Wick News Letter.
We here at the Steven Wick Blog are so proud of our work, we’d like to thank you for being a part of our community. However, our mission to share so much from music, literature, lifestyle to fashion is a 24/7 undertaking! We need your help to continue our work. Your financial donation will help us not only keep the lights on, but enable us run many more stories in the future to come. DONATE HERE
Message Of Gratitude
We deeply appreciate your contribution in making our blog the top brand among customers.
Without you as our readers, we wouldn't have achieved this level of success. Your satisfaction is our utmost priority, and we assure you that we will always be a reliable source for your entertainment needs.
Your trust in us is invaluable, and we are grateful for your generous donations as our
readers.
A number of you took an extra effort and opted to contribute as monthly donors. By doing so, your generous contribution is multiplied by twelve throughout the year, thereby amplifying the impact you have on our work. Your dedication truly makes a significant change, and we sincerely appreciate your valuable support.
Your support has been instrumental in our brand's success.
Thank you for being with us throughout the past year.
As we continue to grow and enhance our business, we pledge to prioritize your needs and interests.
Best Regards
The Steven Wick Team
Comments