FINRA Fines BofA Securities $24 Million for More Than 700 Spoofing Instances by Former Traders
November 30 2023 - 11:21AM
Dow Jones News
By Denny Jacob
The Financial Industry Regulatory Authority fined BofA
Securities $24 million for more than 700 instances of spoofing
through two former traders.
Spoofing is a type of fraudulent trading in which trades not
intended to be executed create the appearance of market activity to
induce other market participants to trade against orders that were
actually executed.
FINRA, a not-for-profit organization overseen by the U.S.
Securities and Exchange Commission, said a former supervisor and a
former junior trader executed 717 instances of spoofing in a U.S.
Treasury security to induce opposite-side executions in the same
Treasury security or a correlated Treasury futures contract.
BofA Securities consented to the entry of FINRA's findings
without admitting or denying the charges in settling the matter,
said FINRA.
"This matter stems from the actions of two former employees.
Over the past several years, we have made significant investments
to enhance our controls, including improved surveillance, increased
staff, additional training, and updated policies. We worked
cooperatively with FINRA to resolve this matter," said Bank of
America.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
November 30, 2023 11:06 ET (16:06 GMT)
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