A non-U.S. firm agreed to pay $1.7 million to settle SEC charges of misleading investors into trading binary securities options over the internet.
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The Chicago Mercantile Exchange Group amended regulatory guidance concerning requirements for "Exchange for Related Positions" transactions.
The SEC found that the Division of Enforcement had not met its burden to show that an investor had violated anti-fraud provisions by allegedly failing to make delivery when call options he wrote were exercised. However, the SEC found that the broker dealer failed to close out certain "fail to deliver" positions.
The CFTC settled charges that a bank and its energy subsidiary failed to comply with swap dealer requirements to submit accurate large trader reports for physical commodity swap positions.
The CFTC's final rule on trade options was published in the Federal Register. The rule amends the limited trade options exemption in the CFTC Regulations in order to substantially reduce and/or eliminate certain reporting and recordkeeping requirements for end users entering into trade options.