Article: UBS fined in U.S. over improper short sales

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UBS fined in U.S. over improper short sales

Jonathan Stempel

Reuters, 25 October 2011

In the largest penalty of its type, Swiss bank UBS AG was fined $12 million by a U.S. brokerage regulator over its “systemic” failure to properly handle millions of short-sale orders.

The Financial Industry Regulatory Authority said violations by the bank’s UBS Securities LLC broker-dealer unit caused the orders to be mismarked or filled without reasonable grounds to believe the underlying securities could be located.

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