The Financial Industry Regulatory Authority, NASDAQ Stock Market LLC, New York Stock Exchange LLC, Cboe Global Markets Inc. and some of their affiliated exchanges fined Lek Securities Corp. $900,000 and banned its former CEO, Samuel Lek, from the securities industry in all capacities.
According to the findings, Lek Securities provided market access to foreign traders who engaged in forms of manipulative trading on U.S. equity and options exchanges. FINRA said Samuel Lek and Lek Securities assisted this trading and failed to supervise it.
Moreover, Lek Securities also did not control the financial and regulatory risks of providing customers access to an exchange or alternative trading system, a violation of the Market Access Rule.
FINRA noted that Samuel Lek and Lek Securities disregarded several warnings about potential manipulative trading.
Samuel Lek and Lek Securities neither admitted nor denied the charges but consented to the findings. In addition to the $900,000 fine, the firm agreed to certain restrictions on foreign intraday trading, an independent monitor and undertakings.