The SEC yesterday asked U.S. District Judge Victor Marrero in Manhattan to order a $602 million “fair fund” set up to reimburse people who traded Elan Corp. and Wyeth during a seven-day period in July 2008. The companies were victims in the SAC Capital insider trading scandal.
Bank of America Corp.’s Merrill Lynch was fined $6 million by the Financial Industry Regulatory Authority for allowing short-sellers to dump stocks without making sure they had first arranged to borrow the shares.
ICE completed its acquisition of SuperDerivatives; the CFTC is considering whether to require that contracts for non-deliverable forwards be guaranteed at clearinghouses that accept collateral from buyers and sellers.
Chicago Mercentile Exchange will reduce livestock trading hours from the current schedule of 23 hours to as few as six hours a day on Fridays, Bloomberg reported. The change is expected to be implemented later in October, pending CFTC approval.
The settlement talks follow a U.S. Securities and Exchange Commission inquiry begun more than two years ago into key facets of modern markets, including order types -- or instructions for handling transactions that traders can send to exchanges.