trending Market Intelligence /marketintelligence/en/news-insights/trending/Lb6eYKot1krWJt8ZetsH1w2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In this list

Merrill Lynch to pay SEC $8M over improper handling of 'pre-released' ADRs

Street Talk Episode 56 - Latest bank MOE shows even the strong need scale to thrive

South State CenterState MOE Shows Even The Strong Need Scale To Thrive

Talking Bank Stocks, Playing The M&A Trade With Longtime Investor

Report: Kashkari Says Fed In Holding Pattern But Rate Cut Still Possible

Merrill Lynch to pay SEC $8M over improper handling of 'pre-released' ADRs

Merrill Lynch Pierce Fenner & Smith Inc. agreed to settle charges of improper handling of "pre-released" American depositary receipts with the SEC for more than $8 million.

The regulator found that the company improperly borrowed prereleased ADRs from other brokers when it should have known that those brokers did not own the foreign shares needed to support the ADRs. This inflated the total number of a foreign issuer's securities, resulting in abusive practices like inappropriate short-selling and dividend arbitrage.

According to the order, the company's policies and procedures failed to prevent and detect these securities law violations.

Merrill Lynch did not accept or deny the charges but agreed to pay more than $4.4 million in disgorgement, more than $724,000 in prejudgment interest and a $2.89 million penalty to settle the matter.