Newedge USA LLC, the brokerage co-owned by Credit Agricole SA (ACA) and Societe Generale SA (GLE), was fined $9.5 million by regulators and exchanges for breaking rules including a failure to supervise trading by clients.
The broker agreed to pay the fine jointly to the Financial Industry Regulatory Authority, New York Stock Exchange, Nasdaq Stock Market and Bats Exchange Inc., according to Finra records. Newedge also agreed to retain an independent consultant to review how it runs its equities business, the records show.
The case involved computer-driven trading firms that used Newedge to connect to exchanges, the Wall Street Journal reported earlier today, citing documents the newspaper said it reviewed.
Newedge agreed to the fine without admitting or denying the allegations, according to the records. Richard Newman, a Newedge spokesman in London, said the case didn’t involve the company’s “core futures business” and declined further comment.