Law360, New York (March 21, 2016, 4:12 PM EDT) -- The Financial Industry Regulatory Authority and the Nasdaq Stock Market LLC on Monday said that they have fined Wedbush Securities Inc. $675,000 over its role in a client's redemption activity and trading of leveraged exchange-traded funds, which resulted in failures by Wedbush to live up to its investment obligations.According to FINRA and Nasdaq, Wedbush’s broker-dealer customer Scout Trading LLC routinely submitted so-called naked redemption orders in ETFs, meaning that it was taking insufficiently long positions, which coupled with short selling of the funds on the secondary market, resulted in “substantial, repeated fails to deliver by Wedbush.”From January 2010 to... In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition. TRY LAW360 FREE FOR SEVEN DAYS
Wedbush Securities has been fined a total of $675,000 by the Financial Industry Regulatory Authority (FINRA) and the Nasdaq Stock Market, over its role in a client's redemption activity and trading of leveraged exchange-traded funds; these activities reportedly led to Wedbush failing to honour its investment obligations.