NASD Fines Morgan Stanley $1m For Nasdaq Price Manipulation
WASHINGTON DC--The US's National Association of Securities Dealers (NASD) has fined Morgan Stanley $1 million for improper and fraudulent price inflation of 10 underlying securities that make up the Nasdaq 100 Index (NDX). Morgan Stanley's OTC trading desk allegedly conspired with its programme trading desk to prevent losses estimated at $300 million on two separate option expiry dates. A spokesperson for Morgan Stanley says the firm "strongly disagrees with the conclusion and will appeal".
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