The Securities and Exchange Commission is doing its best to flush out any wayward business activities happening in the United States. The SEC has now, along with the Attorney General for New York, Barbara Underwood, imposed a $10 million fine on the investment conglomerate Credit Suisse.
The fine was imposed because both the SEC and Underwood felt that there were irregularities in the activities carried out by the company when it came to transactions in the private trading forum (dark pool) and the retail orders of customers.
According to the SEC and the state Attorney General, Credit Suisse had not paid due diligence to the proper execution of these orders – which are traditionally not required to be detailed until the transaction has been completed – as compared to those transactions which needed to be moderated from the outset.
Releasing a statement, Underwood said, "Wall Street firms cannot offer misleading assurances about the execution quality they provide their customers while engaging in electronic trading strategies that undermine those promises."
Credit Suisse ended this particular service offering – referred to as the Retail Execution Services – in 2015. The settlement amount pertains to the transactions carried out from 2011-15. Of the $10 million fine, Credit Suisse paid $5 million each to the SEC and to the Attorney General's office.
The imposition – and collection – of this fine by the SEC comes in the wake of its handling the Tesla-Elon Musk incident, in which it had filed a case against Musk. The SEC later offered a settlement deal to Musk, which was accepted by the 47-year-old.
The deal stated that Musk would pay a fine of $20 million to the SEC and would resign from his post as the company chairman.