Archive: Regulations
»  Weblog Main   |   »  View Entries By Topic   |   »  View Entries By Date

Ten Take Aways from Our Trading Summit

Nov 18, 2009 @ 10:57 PM By Kerry Massaro,

I just got back from Advanced Trading’s fourth Buy Side Trading Summit. And although the event is off the record (no reporting using traders' or company names — a way to ensure the buy side feels free to open up —) I figured I’d share the top general takeouts from the event.

Continue reading ...

Schumer/Niederauer Call on Regulators to Create Level Playing Field for Dark Pools and Exchanges

Oct 20, 2009 @ 11:35 AM By Kerry Massaro,

A media advisory from Senator Charles Schumer’s (D-NY) office was released today announcing that he will hold a conference call with Duncan Niederauer, CEO of NYSE Euronext today at 12:30 to urge the Securities and Exchange Commission to institute a series of reforms to better regulate dark pools.

Continue reading ...

Eliot Spitzer on How Banks Have Spent Taxpayers' Money

Sep 15, 2009 @ 12:21 PM By Kerry Massaro,

Former Governor Eliot Spitzer talks with CNN's John Roberts on the economy and Wall Street. Spitzer says not enough has been done since Lehman failed a year ago, likening what has transpired so far to moving deck chairs on the ship of the Titanic and not actually doing anything at a regulatory level that will change the system.

Continue reading ...

Madoff Accountant Arrested

Mar 19, 2009 @ 02:27 PM By Cristina McEachern Gibbs,

It was only a matter of time before more people involved in the Bernard Madoff Investment Securities fraud would come out of the woodwork and now the dominoes might begin to fall.

On Wednesday, federal prosecutors charged David Friehling, the accountant who audited Madoff’s firm, with fraud.

Friehling was the only auditor at the firm of Friehling & Horowitz, which the government says was responsible for auditing Madoff’s firm beginning in 1991.

According to a statement released by the Department of Justice, Acting U.S. Attorney Lev Dessin, said, "Mr. Friehling is charged with crimes that represent a serious breach of the investing public's trust.”

He added, "Although Mr. Friehling is not charged with knowledge of the Madoff Ponzi scheme, he is charged with deceiving investors by falsely certifying that he audited the financial statements of Mr. Madoff's business. Mr. Friehling's deception helped foster the illusion that Mr. Madoff legitimately invested his clients' money."

The charges against Friehling include securities fraud, aiding and abetting investment advisor fraud and filing false audit reports with the SEC. If convinced Friehling could fact a maximum sentence of 105 years in prison.

According to the DoJ statement, Madoff’s firm paid Friehling between $12000 and $14500 per month for his services between 2004 and 2007.

This week the also saw the government’s intent to actively go after the assets of Madoff’s sons and wife.

According to a government filing on Tuesday, Madoff loaned sons Andrew and Mark more than $30 million since 2004. Reports say that the last of the loans – to Andrew for $4.3 million - occurred in October of 2008, two months before Madoff’s arrest.

Prosecutors have also indicated they are looking to seize Ruth Madoff’s jewelry collection which is valued at $2.6 million.

Continue reading ...

The Morning Madoff Frenzy

Mar 12, 2009 @ 02:44 PM By Cristina McEachern Gibbs,

It was obviously just speculation, but as soon as I got in this morning I started reading the blogs and news reports predicting the outcome of Madoff’s day in court. We've all been waiting for this right?

One was particularly foreboding - pointing out that Madoff entered the courthouse today without his usual jacket or overcoat. It was chilly this morning and so maybe Madoff knew his fate? Maybe he knew he was going to jail today and would not need a coat from here on out.

But then the blogs and preliminary hearing speculation also reported that there was no plea bargain arrangement with prosecutors in place. This guilty plea did not come with any stipulation that he cooperate with authorities or help in naming any co-conspirators. Interesting.

As the hearing got underway, the news flurry began with stories being updated and changed by the minute. Bernard Madoff has officially plead guilty to 11 charges relating to his $65 billion Ponzi scheme in U.S. District Court.

During the hearing today Madoff read from his 6-page plea allocution, which can be viewed in its entirety here.

Apparently there was applause. But still there was so much more that we all want to know.

This was the first time Madoff has spoken publicly about his crime since his arrest in December and although he did share some interesting details about his fraud, so many questions still remain.

We still don’t know who else, if anyone was involved, how they were involved and where exactly the money went. There is even still some discrepancy between how much the authorities think Madoff scammed and how much Madoff thinks he scammed.

But we do know that Madoff was lead away in handcuffs and will be in jail as he awaits sentencing on June 16th, most likely at the Manhattan Correctional Center according to published reports. But he may later be moved to another facility such as the Federal Correctional Institution in Otisville, New York.

I’m sure there will be more details to come and only time will tell the full depth of Madoff’s scheme and how it played out.

Continue reading ...

Muriel Siebert Passionate About Short Selling Rules

Jul 16, 2008 @ 05:59 PM By Kerry Massaro,

When the news about the SEC’s emergency order to stop “naked short selling” started leaking out yesterday, I was on the phone with Muriel (Mickie) Siebert discussing the Short Sale Uptick Rule that was lifted one year ago. I definitely had the right person on the phone at the right time. Siebert, renowned for being the first woman to own a seat on the New York Stock Exchange and also for founding the discount brokerage Siebert Financial Corp., was against the removal of the Uptick Rule last year. She believed then that it stripped companies of protection against short sellers and still believes it should be put back in place. [The Uptick Rule said you could not short a stock until there was an uptick in its price, preventing a free-for-all downward spiral of the stock.]

Continue reading ...

TradingScreen Releases MiFID In a Box

Jul 25, 2007 @ 12:19 PM By Cristina McEachern Gibbs,

With the MiFID deadline approaching this fall and firms in the midst of preparations, TradingScreen has released its MiFID In a Box offering to help buy side firms meet the upcoming European regulatory guidelines.

Continue reading ...

New Study Finds Buy Side Wants Guidance Around Soft Dollars

Jun 5, 2007 @ 04:39 PM By Cristina McEachern Gibbs,

According to a new research study from Greenwich Associates, the majority of investment managers and pension plan sponsors surveyed are in a favor of a more comprehensive regulatory framework around the disclosure of client commissions paid for equity research.

Continue reading ...

NEW DATES FOR REG NMS COMPLIANCE

Jan 26, 2007 @ 10:55 AM By Kerry Massaro,

The SEC has postponed the Trading Phase date of Regulation NMS, as well as two other deadlines for the Order Protection and Access Rules.

Continue reading ...

NASD/NYSE Regulatory Consolidation Approved

Jan 22, 2007 @ 04:30 PM By Kerry Massaro,

As expected the NASD members approved the regulatory consolidation of the NASD and NYSE. The vote took place on Friday. I'm sure the industry across the board is celebrating the decision as this move is expected to reduce the regulatory and financial burden of all member firms.

Continue reading ...