Newedge Fined $9.5 Million for Failure to Supervise Trading

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.

To contact the reporter on this story: Zeke Faux in New York at zfaux@bloomberg.net

To contact the editors responsible for this story: Christine Harper at charper@bloomberg.net; David Scheer at dscheer@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.