Wall Street Regulator Says Complaints About Market Manipulation and “Suspicious Trading” Significantly Increased This Year
September 17, 2011 in News
A Wall Street regulator said industry complaints about market manipulation and trade reporting have spiked this year, raising questions about the adequacy of banks’ internal controls over their traders. Gene DeMaio, of Financial Industry Regulatory Authority (FINRA), said on Wednesday that his group is still investigating these complaints. On Thursday, UBS AG said a rogue trader, who was later charged in London with fraud, will cost it $2 billion in the third quarter. The loss highlights the extent to which some banks still cannot police their traders. FINRA has received complaints this year about banks’ audit systems, canceled orders, and brokers misrepresenting whether orders were on behalf of customers, DeMaio said.