September 26, 2016
Posted October 10, 2016
Merrill Lynch will pay a $12.5 million penalty for failure to maintain effective trading controls, thus failing to prevent erroneous orders from being sent to the markets and causing mini-flash crashes. An SEC investigation found that Merrill Lynch caused market disruptions on at least 15 occasions from late 2012 through mid-2014 and violated the Market Access Rule because its internal controls in place to prevent erroneous trading orders were set at levels so high that it rendered them ineffective. The erroneous orders caused certain stock prices to plummet and then suddenly recover within seconds. SEC
Tagged in: Financial and Investment Fraud, Financial Institution Fraud,