Financial Industry Regulatory Authority Fines Macquarie Capital (USA) Inc. $2.95 Million for Submitting Inaccurate Blue Sheet Data
Dec 23 15
The Financial Industry Regulatory Authority (FINRA) announced it has censured and fined Macquarie Capital (USA) Inc. $2.95 million for failing to provide complete and accurate trade data in an automated format when requested by the Securities and Exchange Commission (SEC) and FINRA. Also, Macquarie must conduct a comprehensive review of its policies, systems and procedures related to blue sheet submissions, and to subsequently certify that they have established procedures reasonably designed to address and correct the violations. The SEC and FINRA request trade data, or ‘blue sheets,’ to assist them in investigations focused on equity trading, including market manipulation and insider trading. Federal securities laws and FINRA rules require firms to provide this information to FINRA and other regulators electronically upon request. Blue sheets provide regulators with critical information about securities transactions, including the security, trade date, price, share quantity, customer name, and whether it was a buy, sale, or short sale. This information is essential to regulators’ ability to discharge their enforcement and regulatory mandates. FINRA found that from January 2012 to September 2015, Macquarie experienced multiple problems with its electronic systems used to compile and produce blue sheet data. This caused the firm to submit some blue sheets that misreported buys as sells and vice versa on allocations of certain customer trades, miscalculate the net amount of transactions, fail to report post-trade cancels and corrections, and fail to provide accurate customer information. FINRA also found that Macquarie failed to have adequate audit systems in place. In settling this matter, Macquarie neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.
Macquarie Capital (USA) Inc. and Brean Murray, Carret & Co. Agree to Pay Investors $8.6 Million to Settle Lawsuit over Puda Coal Fraud
Oct 21 15
Macquarie Capital USA and Brean Murray, Carret & Co. have agreed to pay investors $8.6 million to settle allegations they underwrote a $108 million offering for a Chinese coal company that turned out to be a fraud. On Oct. 19, settlement, under which Macquarie will pay shareholders $7.4 million and Brean will pay $1.2 million, must still be approved by the court. The two firms agreed to the settlement without admitting to any wrongdoing. The lawsuit, filed in 2011 in federal court in Manhattan, said that Macquarie and Brean underwrote a $108 million stock sale for China-based Puda Coal Inc. even though they were aware that most of its main business had been transferred to the company's CEO Liping Zhu.
Macquarie Securities Announces New Appointments
Sep 10 15
Macquarie Securities on September 9, 2015, announced the appointment of Brian Pordon to U.S. head of syndication. Pordon joins the company as a senior vice president. He most recently served as a vice president at Itaú BBA, where his responsibilities included equity offerings for corporate and financial sponsors. Macquarie Securities also said Robert Salmon joined as a senior sales trader and senior vice president in sales trading. He previously worked as a managing director in sales trading at Sterne Agee.