Month: July 2019

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Article: Merrill Lynch Commodities receives $25m fine for spoofing and market manipulation (15 July 2019)

Article - Media

Merrill Lynch Commodities receives $25m fine for spoofing and market manipulation (15 July 2019)

Jennie Clarke

Behavox, 15 July 2019

Merrill Lynch Commodities Inc has received a $25m charge from the US Commodity Futures Trading Commission (CFTC) for spoofing, manipulation and attempted manipulation, with respect to certain precious metals futures.

The CFTC found that Merrill Lynch Commodities traders placed orders to buy and sell precious metals futures contracts with the intent to cancel their orders before execution. The traders employed a specific spoofing strategy in which they would place a small bid or offer with the intent to execute that order. Prior to the execution of that order, they would place a larger order on the opposite side of the same market with the intent to cancel that order before execution. This manipulated market prices and created artificial and fluctuating prices.

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Article: Vistra Energy Completes Acquisition of Crius Energy Trust

Article - Media, Publications

Vistra Energy Completes Acquisition of Crius Energy Trust

Crius Energy Trust, 15 July 2019

Vistra Energy (NYSE: VST) and Crius Energy Trust (“Crius Energy”) (TSX: KWH.UN) today announced the successful completion of the previously announced acquisition by Vistra of the business of Crius Energy. The closing of the transaction follows the overwhelming approval of the transaction by Crius Energy unitholders at the special meeting of unitholders held on March 28, 2019, and the receipt of all required regulatory approvals, including approval from the Federal Energy Regulatory Commission on July 8, 2019. As a result of the closing today, Crius Energy unitholders are entitled to receive C$8.80 per trust unit upon the redemption of such units. In addition, Crius Energy unitholders that were holders of record on March 26, 2019 will receive C$0.209 per unit for the distribution previously declared by Crius Energy on Jan. 16, 2019. The combination of these amounts results in total cash payable to Crius Energy unitholders of C$9.009 per unit. Crius Energy expects that the distribution of C$0.209 per unit will be payable today, with the transaction consideration of C$8.80 payable within three business days of today’s date. The units of Crius Energy are expected to be delisted from the Toronto Stock Exchange as of the close of markets on July 17, 2019, and Crius Energy is expected to be wound-up following the redemption of the trust units on July 18, 2019.
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Article: Bank Of America, Morgan Stanley Again Accused Of Spoofing

Article - Media

Bank Of America, Morgan Stanley Again Accused Of Spoofing

Rachel Graf

Law360, 12 July 2019

Morgan Stanley & Co. LLC, Bank of America Corp. and its subsidiary Merrill Lynch Commodities Inc. engaged in spoofing in an effort to manipulate precious metals futures, according to a proposed class action filed Friday in New York federal court.

Three New York investors claim the banks, two former Merrill Lynch traders and 18 unnamed individual defendants manipulated gold, silver, platinum and palladium futures through a spoofing scheme in which they placed buy or sell orders that they intended to cancel. The practice simulates supply or demand, allegedly allowing the banks to profit from the swings in prices.

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Article: Online food delivery comes with a side of fraud

Article - Media, Publications

Online food delivery comes with a side of fraud

Monica Eaton-Cardone, 12 July 2019

Digital payments and remote channels were generally slower to gain traction in the food and beverage sector compared to other retail outlets. Now, though, the industry is making up for that delayed adoption.

Digital channels in the industry now demonstrate rapid YoY growth. Total delivery sales in food service in the U.S. reached $34 billion in 2018, representing a 13% increase compared to the previous year.

Much of that boost took the form of food delivery apps like DoorDash, Uber Eats, Grubhub, or Postmates, as well as merchants’ own individual apps. Overall, food delivery represented roughly 37% of restaurant industry sales.
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Article: Part 9 of Illegal Naked Shorting Series: The Risk/ Reward of Shorting Versus Buying Stocks is Extremely Unfavorable

Article - Media

Part 9 of Illegal Naked Shorting Series: The Risk/ Reward of Shorting Versus Buying Stocks is Extremely Unfavorable

Larry Smith

Smith On Stocks, 11 July 2019

In this report, I contrast the risk and reward of shorting versus buying stocks. When you unravel the economics and risk/ reward of shorting, it is clear to me that this is a highly risky, low return strategy. As argued in this report, I see shorting as a losers game if employed consistently over time as opposed to buying stocks which is a winners game. I see shorting as a niche strategy that is applicable on a short term trading basis for a very limited number of stock trades. I think you will agree with me as I go through the major risk and reward elements of shorting.

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Fined: BNP Paribas Securities Corp. Fined by FINRA

Fined

BNP Paribas Securities Corp. Fined by FINRA

11 July 2019

An AWC was issued in which the firm was censured and fined $100,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to report and failed to timely report to the FINRA/Nasdaq Trade Reporting Facility® (FNTRF) transactions effected pursuant to the exercise of an overthe-counter (OTC) option that required a special trade report modifier.

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Fined: Clearpool Execution Services, LLC Fined by FINRA

Fined

Clearpool Execution Services, LLC Fined by FINRA

10 July 2019

An AWC was issued in which the firm was censured and fined $473,000, of which $43,000 is payable to FINRA. The remaining balance is to be paid to other selfregulatory organizations in related matters. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to establish and maintain a system that was reasonably designed to achieve compliance with applicable securities laws and regulations, and applicable FINRA rules.

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Fined: Aegis Capital Corp. Fined by FINRA

Fined

Aegis Capital Corp. Fined by FINRA

10 July 2019

An AWC was issued in which the firm was censured and fined $93,125. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that while participating in public offerings that were subject to FINRA Rule 5110, it failed to file certain documents specified in FINRA Rule 5110(b)(5) with FINRA after it had filed such documents with the SEC. The findings stated that to date, these documents have not been filed with FINRA.

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Fined: Traderfield Securities Inc. Fined by FINRA

Fined

Traderfield Securities Inc. Fined by FINRA

9 July 2019

An AWC was issued in which the firm was fined $5,000. Without admitting or denying the findings, the firm consented to the sanction and to the entry of findings that it failed to have a system of supervisory control procedures that tested and verified that its supervisory procedures were reasonably designed to achieve compliance with applicable securities laws and regulations and FINRA rules.

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Fined: OTA LLC Fined by FINRA

Fined

OTA LLC Fined by FINRA

8 July 2019

An AWC was issued in which the firm was censured and fined $15,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it had fail-to-deliver positions at a registered clearing agency and did not close out the fails by purchasing or borrowing securities of like kind or quantity within the required timeframe.

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Fined: Citigroup Global Markets Inc. Fined by FINRA (July 2019)

Fined

Citigroup Global Markets Inc. Fined by FINRA

8 July 2019

An AWC was issued in which the firm was censured and fined $55,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to report reportable options positions to the large options position reporting (LOPR) system due to a programming error in connection with accounts acting in-concert, and failed to report proprietary positions as acting-in-concert, because of a design flaw in its reporting logic. The findings stated that the firm reported positions to the LOPR in the wrong format and with an incorrect effective date.

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Fined: Planmember Securities Corporation Fined by FINRA

Fined

Planmember Securities Corporation Fined by FINRA

3 July 2019

An AWC was issued in which the firm was censured and fined $90,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it had no WSPs or reasonable supervisory system for the surveillance of rates of variable annuity exchanges. The findings stated that the firm purported to use a spreadsheet prepared each month that summarized all variable annuity transactions to surveil rates of variable annuity exchanges.

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Fined: CV Brokerage, Inc Fined by FINRA

Fined

CV Brokerage, Inc Fined by FINRA

2 July 2019

A Letter of Acceptance, Waiver and Consent (AWC) was issued in which the firm was censured and fined $100,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to establish and maintain a supervisory system and failed to establish, maintain and enforce WSPs, reasonably designed to achieve compliance with applicable FINRA rules regarding the participation of firm registered representatives in private securities transactions. The findings stated that a representative of the firm participated in multiple private securities transactions, at least two of which are known to have involved firm customers. Among others, the representative formed an investment fund that was managed by her registered investment advisory firm.

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Article: Part 8: Illegal Naked Shorting Series: Who or What is Cede and What Role Does Cede Play in the Trading of Stocks?

Article - Media

Part 8: Illegal Naked Shorting Series: Who or What is Cede and What Role Does Cede Play in the Trading of Stocks?

Larry Smith

Smith On Stocks, 1 July 2019

ost investors when they buy a publicly traded stock believe that they own a part of some company. They think that somewhere there is a stock certificate or some indication of ownership that has their name on it, but this is not the case. When you buy a “stock” you are actually purchasing a security that affords certain entitlement rights related to registered stock which actual owners hold. The registered shares of a private company are directly owned by shareholders. In contrast, the registered shares of nearly all publicly traded equities are owned by Cede & Co., which is the nominee of the Depository Trust Company (DTC). (A nominee is a company whose name is given as having title to a stock, but does not receive the financial benefits of ownership.) Cede is a subsidiary of the Depository Trust Company (DTC) which is a subsidiary of the Depository Trust and Clearing Corporation (DTCC) and the DTCC is a private company owned by elite Wall Street firms and money center banks. If you need background or a refresher on DTC and DTCC, click on this link. Effectively, elite Wall Street firms and money center banks, not institutions and individual investors, own almost all of the registered shares of publicly traded companies in the US.

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Release: Pawar Law Group Reminds Investors of July 29 Deadline in Securities Class Action Lawsuit Against Bloom Energy Corporation – BE

Release

Pawar Law Group Reminds Investors of July 29 Deadline in Securities Class Action Lawsuit Against Bloom Energy Corporation – BE

1 July 2019

Pawar Law Group announces that a class action lawsuit has been filed on behalf of shareholders who purchased shares of Bloom Energy Corporation (: BE) pursuant and/or traceable to Bloom Energy’s false and/or misleading registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with Bloom Energy’s initial public offering completed in July 2018 (the “IPO”). The lawsuit seeks to recover damages for Bloom Energy investors under the federal securities laws. If you wish to serve as lead plaintiff, you must move the Court no later than July 29, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

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THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?