October 17, 2017 10:10 AM ET

Capital Markets

Company Overview of E*TRADE Securities LLC

Company Overview

E*Trade Securities LLC provides security-underwriting and brokerage services. The company was founded in 1992 is based in Menlo Park, California. E*Trade Securities LLC operates as a subsidiary of ETCM Holdings, Inc.

34 Exchange Place

Harborside Financial Center

501 Plaza 2

Jersey City, NJ 07311

United States

Founded in 1992

Key Executives for E*TRADE Securities LLC

President and Chief Brokerage Officer
Age: 59
Compensation as of Fiscal Year 2017.

E*TRADE Securities LLC Key Developments

E*TRADE Securities LLC and E*TRADE Clearing LLC to Pay $280,000 Civil Monetary Penalty for Failure to Retain Required Records and Failure to Diligently Supervise

The U.S. Commodity Futures Trading Commission issued an Order filing and settling charges against E*TRADE Securities LLC and E*TRADE Clearing LLC for non-compliance with applicable record-keeping rules and failure to diligently supervise. Both entities have their headquarters in Chicago, Illinois. The CFTC Order finds that between October 2009 and January 25, 2014, E*TRADE Securities did not preserve and maintain certain audit trail logs for their customers. Similarly, E*TRADE Clearing did not preserve and maintain customer audit trail logs after becoming registered as a Futures Commission Merchant in February 2013. The Order finds that by not preserving and maintaining these records, E*TRADE Securities and E*TRADE Clearing violated Section 4g(a) of the Commodity Exchange Act (CEA) and CFTC Regulations 1.31 and 1.35. The CFTC Order requires E*TRADE Securities and E*TRADE Clearing jointly to pay a $280,000 civil monetary penalty and to cease and desist from further violations of the CEA, as charged. To prevent similar problems in the future, the Order also requires E*TRADE Securities and E*TRADE Clearing to improve their recordkeeping procedures by updating their policies and procedures and providing appropriate training to officers and employees regarding the CEA's recordkeeping requirements.

Financial Industry Regulatory Authority Fines E*Trade Securities LlLC $900,000 for Supervisory Violations Related to Best Execution and Protection of Customer Order Information

The Financial Industry Regulatory Authority announced that it has censured and fined E*Trade Securities LLC $900,000 for failing to conduct an adequate review of the quality of execution of its customers' orders and for supervisory deficiencies concerning the protection of customer order information. FINRA found that, E*Trade's Best Execution Committee lacked sufficiently accurate information to reasonably assess the execution quality it provided its customers. E*Trade's Best Execution Committee also failed to take into account internalized order flow sent to its affiliated broker-dealer market maker G1 Execution Services (G1X) and failed to adequately consider the actual execution quality provided by the market centers to which it routed orders. In addition, E*Trade regularly accepted requests from G1X to change prioritization in E*Trade's order routing system and to redirect certain order flow, without determining whether these changes would improve the quality of execution received by its customers. FINRA also found that E*Trade did not have adequate systems and controls in place to ensure that there was no misuse of confidential customer order information by individuals dually registered with E*Trade and G1X.

Live Ventures Incorporated Announces Lawsuits Against Ameritrade, Inc., E*trade Securities, LLC and Charles Schwab & Co. Inc. for Improper Trading of its Stock

Live Ventures Incorporated announced it has filed a lawsuit in New York State Court against Ameritrade, Inc., E*trade Securities, LLC and Charles Schwab & Co. Inc. seeking discovery and further information regarding the trading activity in the Company's stock. The company has become aware of a significant share imbalance between the shares reported to be held in the Depository Trust and Clearing Corporation (DTCC), which is the location broker dealers report their holdings, and the shares reported to Broadridge Financial Solutions to be held by the broker dealer's customers. This share imbalance is substantial and is indicative of improper and illegal trading activity in the company's stock. The company is committed to investigating and taking appropriate action to protect the company and its bona fide shareholders from such improper activities.

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