Goldman Sachs has agreed to pay a settlement in the region of $110m, split between the New York Department of Financial Services and the Federal Reserve Board, for the improper use of inside information relating to client orders in chat rooms. An article on the settlement can be found here on the Bloomberg web site. The press release from the Department of Financial Services can be found here and the consent order here.
The consent order shows several chat room transcript extracts, with the revelations of client information to keep spreads at a certain level. Different clients have different nicknames in the chats. The order also discusses how certain personnel gave warnings, which were not escalated. The order discusses how although polices against such practices were in place, they were not adequately implemented.
About avivhandler
Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets.
He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology.
Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation.
Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations.
Mr. Handler holds a degree in computer science from Imperial College, University of London.
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