NYSE Regulation says it has ordered Swiss American Securities Inc. (a unit of Credit Suisse Group) and UBS Securities LLC to pay fines for a number of securities violations.
The regulatory arm of the New York Stock Exchange says UBS Securities is being fined $95,000 for canceling or entering limit-on-close and market-on-close orders in a number of securities after relevant cut-off times. These violations happened between June 2005 and February 2006. Other violations were also cited as reasons for the fine.
Swiss American Securities was fined $100,000 because it failed to maintain control or possession of all excess and fully paid margin securities that it held for customer accounts (in 2004 and 2005), as well as other violations.
Both UBS Securities and Swiss American Securities have not admitted or denied the accusations. They have, however, agreed to censures and to paying the fines.
NYSE regulation also disciplined 15 people for violating federal securities regulations and exchange rules involving sales practice violations, misappropriation, and failure to reveal prior criminal records.
Also called an at-the-close order, a market-on-close order is a market order that must occur as close as possible to the end of the exchange day.
A limit-on-close order is an order to sell or buy shares near the market close but only if the closing price is better than the limit price. This type of order expands on the market-on-close order in that it adds a limit condition that puts a minimum on the selling price and a maximum on the entry price.
Although securities regulators are there to oversee the securities industry and issue suspensions and fines, investors have to file a claim to recover any losses. If you are investor who has lost money from an investment because of inappropriate actions by members of the securities industry, you are more like to obtain a recovery if you hire an attorney to represent you.
Shepherd Smith and Edwards has helped thousands of investors recover their losses. Call Shepherd Smith Edwards & Kantas LTD LLP today to schedule a free consultation.
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