SEC charges trader with market abuse
Paul Berliner settles with the SEC on charges of market manipulation
WASHINGTON, DC – Only weeks after rumours of market abuse surrounded the near collapse of Bear Stearns, US regulator the Securities and Exchange Commission (SEC) has charged a trader with spreading false rumours.
Paul Berliner, a trader for the Schottenfeld group, is charged with spreading false rumours on November 29, 2007. Instant messaging between his trader friends spread the rumour that Blackstone was considering lowering its price for its takeover of Alliance Data Systems (ADS). Blackstone had agreed to acquire ADS for $6.4 billion six months earlier. The false rumours said Blackstone’s initial offer of $81.75 per share would be reduced to $70 due to problems in ADS’ consumer banking division. The rumours reduced ADS’ stock by 17% noon that day.
Berliner has agreed to settle without admitting or denying the SEC allegations. He is required to pay a $130,000 fine and surrender $26,129 made in profits and interest. He is also barred by an SEC order from any association with a broker or dealer.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Dutch regulator in new push on algo manipulation
AFM teams up with Oxford Uni academics to develop data models that will identify “harmful” collusion in automated trading
Fed relief plan for G-Sib agency clearing welcomed
Rollback may revive interest in European FCM model, as principal clearing still treated punitively
Indian initial margin launch brings operational headaches
Conglomerates with multiple entities trading derivatives pose compliance challenges for dealers
Fed’s new liquidity rule spells more pain for regional banks
Limit on HTM assets follows move to deduct unrealised losses from capital buffers
Ruled out: can regulators settle the pre-hedging debate?
Market participants are at odds over the practice and whether regulation or principles can settle the score
SEC streamlines overhaul of stock trading rules
Tick size and access fee rules simplified from first draft, but Peirce still questions rationale
Supervisors use generative AI to tame ‘chaotic’ data
Officials merge credit databases with unstructured reports to sharpen bank oversight, explains Banco de España ex-deputy
EU banks fear loss of NSFR repo relief
European Commission must decide by next June; other jurisdictions adopted softer calibration