CBOE settles with the SEC on an enforcement action involving sham trades by member firm optionsXpress and it CFO.
Exchange executives, long shielded from legal scrutiny in the U.S., have been put on notice that may be changing after federal regulators fined CBOE Holdings Inc. $6 million for unprecedented lapses in supervision.
In a double boogie, the SEC fined both optionsXpress for illegal short trades and CBOE for regulatory failures.
OptionsXpress Inc., a unit of U.S. brokerage Charles Schwab Corp., and its former chief financial officer helped to facilitate sham transactions that violated U.S. securities laws, an administrative court ruled.
optionsXpress Inc., its former chief financial officer and an affiliated dealer were accused by U.S. regulators of violating securities laws by skirting registration requirements in order to avoid an audit.
optionsXpress Inc., the Chicago brokerage acquired by Charles Schwab Corp. last year, was accused by U.S. regulators of using sham “reset” transactions as part of an abusive naked short-selling scheme.
Charles Schwab and optionsXpress announced a merger agreement. Here is the letter from David Fisher, CEO of optionsXpress, announcing the merger
A total transaction value of approximately $1 billion