Eventus

Validus in Practice (ViP)

Running a Trade Surveillance System Without Proper Calibration and Procedures Is Like Having a Race Car With No Brakes

By: Chris Montagnino, Director of Regulatory Affairs, Eventus   Recently, a broker-dealer was faced with an $850,000 fine from FINRA and a significant undertaking to hire an independent consultant for failures in the supervision of their surveillance and AML processes. The Firm did not have procedures to monitor for potentially manipulative trading, as well as …

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Classic Insider Trading Cases Come Roaring Back in 2022

By: Chris Montagnino, Director of Regulatory Affairs, Eventus The year 2022 has been dominated by a high number of traditional insider trading actions brought by the Securities and Exchange Commission. The number of such cases has well exceeded the number of similar cases filed in 2020 and 2021. Cases range from corporate insiders trading while …

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Considerations for Spoofing Detection – Proving Intent

By: Chris Waitz, Director of Regulatory Affairs, Eventus In recent enforcement action, The CFTC charged one trader and fined two other traders and one proprietary trading firm for spoofing violations. The two traders and the firm received fines totaling $850,000 and the traders also received trading suspensions of four months and six months. While these …

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CME Enforcement Action: Indicative Opening Price (IOP) Violations

By: Chris Waitz, Director of Regulatory Affairs, Eventus Two US Futures Commision Merchants (“FCMs”) recently paid fines totaling $120,000 to the Chicago Mercantile Exchange (“CME”) and the Chicago Board of Trade (“CBOT”) for submitting orders which adversely impacted the exchanges’ Indicative Opening Price. CME and CBOT Rule 573 (“Globex Opening”) states that prior to the …

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Firms Still Experiencing Pains from Failures Related to Short Selling

By: Chris Montagnino, Directory of Regulatory Affairs, Eventus Two recent enforcement actions serve as reminders of the importance of having appropriate supervision and monitoring relating to short sales. In each matter, the firm incurred violations of SEC Regulation SHO (“Reg SHO”) and paid a six figure fine as a result of the missteps. SEC Rule …

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Energy Markets and Algo Trading

By Martina Rejsjo, Director of Regulatory Affairs, Eventus A recent article published by Independent Commodity Intelligence Services (ICIS) has highlighted the ongoing debate around algorithmic trading (algo trading) and increased market volatility in the Energy market. Natural gas and electricity markets are physical markets and volatility is typically driven by market-relevant news. However, more recently, …

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Proposed New Trade Reporting for Over-The-Counter Option transactions

By Martina Rejsjo, Director of Regulatory Affairs, Eventus FINRA has issued Regulatory Notice 22-14 to propose a new regulatory reporting framework for over the counter (OTC) option transactions. OTC options are customized, bilateral transactions agreed upon directly by the parties to the option contracts, and many of the traded OTC options are identical in terms …

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EU Finds Agreement on Crypto Regulation

By Mike Castiglione, Director of Regulatory Affairs, Digital Assets In late June 2022, EU Parliament members announced agreement on a comprehensive bill that would require crypto businesses to follow anti-market abuse rules that build on the already-established rules for other asset classes outlined in the EU’s Market Abuse Regulation (MAR). This new bill, called the …

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