United States Authorities Fine TD Securities $28.3 Million for Manipulating US Treasury Cash Securities Over 13 Month Period from 2018 to 2019, Then-Trader Spoofed US Treasury Cash Securities Market by Entering Order on One Side with No Intention of Executing and Concurrently Entering Order on Other Side to Execute Resulting in Illegal Profits
4th October 2024 | Hong Kong
United States authorities have fined TD Securities a total of $28.3 million for manipulating US Treasury Cash Securities over 13 month period from 2018 to 2019, with then-trader spoofing US Treasury Cash Securities market by entering order on one side with no intention of executing and concurrently entering order on other side to execute resulting in illegal profits. United States SEC (30/9/24): “The Securities and Exchange Commission today announced charges against registered broker-dealer TD Securities (USA) LLC for manipulating the U.S. Treasury cash securities market through an illicit trading strategy known as spoofing. The bank was also charged for failing to supervise the then-head of its U.S. Treasuries trading desk, who allegedly made hundreds of illegal trades over a 13-month period. According to the SEC’s order, between April 2018 and May 2019, the former TD Securities trader spoofed the U.S. Treasury cash securities market by entering orders on one side of the market that he had no intention of executing (herein, non-bona fide orders), so he could obtain more favorable execution prices on bona fide orders he was entering simultaneously on the other side of the market. After the bona fide orders were filled, resulting in profits to TD Securities, the trader allegedly then canceled the non-bona fide orders. The SEC’s order also finds that TD Securities lacked adequate controls and that it failed to take reasonable steps to scrutinize the trader after receiving warnings of his potentially irregular trading activity. TD Securities consented to the entry of the SEC’s order finding that it violated an antifraud provision of the federal securities laws and failed to reasonably supervise the trader. TD Securities was further ordered to cease and desist from future violations of the relevant antifraud provision, was censured, and was ordered to pay disgorgement of $400,000, prejudgment interest, and a civil penalty of $6.5 million. In a related matter, TD Securities has entered into a deferred prosecution agreement with the U.S. Department of Justice (DOJ) and has agreed to pay a total monetary sanction of more than $15 million as part of that agreement, of which $400,000 will be credited by disgorgement to the SEC. TD Securities has separately agreed to pay a $6 million fine to the Financial Industry Regulatory Authority (FINRA) to resolve related charges.”
“ United States Authorities Fine TD Securities $28.3 Million for Manipulating US Treasury Cash Securities Over 13 Month Period from 2018 to 2019, Then-Trader Spoofed US Treasury Cash Securities Market by Entering Order on One Side with No Intention of Executing and Concurrently Entering Order on Other Side to Execute Resulting in Illegal Profits “
United States Authorities Fine TD Securities $28.3 Million for Manipulating US Treasury Cash Securities Over 13 Month Period from 2018 to 2019, Then-Trader Spoofed US Treasury Cash Securities Market by Entering Order on One Side with No Intention of Executing and Concurrently Entering Order on Other Side to Execute Resulting in Illegal Profits
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