{"id":38684,"date":"2013-10-17T14:18:42","date_gmt":"2013-10-17T18:18:42","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=38684"},"modified":"2013-10-17T14:55:26","modified_gmt":"2013-10-17T18:55:26","slug":"sec-chargeshedge-fund-firm-with-violations-of-market-access-rule","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2013\/sec-chargeshedge-fund-firm-with-violations-of-market-access-rule.html","title":{"rendered":"SEC Charges Hedge Fund Firm With Violations of Market Access Rule"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2011\/09\/sec_building.gi_.top_.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright  wp-image-25019\" alt=\"sec_building.gi.top\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2011\/09\/sec_building.gi_.top_.jpg\" width=\"347\" height=\"241\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2011\/09\/sec_building.gi_.top_.jpg 495w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2011\/09\/sec_building.gi_.top_-300x208.jpg 300w\" sizes=\"auto, (max-width: 347px) 100vw, 347px\" \/><\/a>New York (HedgeCo.Net) \u00a0&#8211; \u00a0Hedge fund Manager Knight Capital Americas LLC has agreed to pay $12 million to settle charges that it violated the SEC&#8217;s market access rule in connection with the firm\u2019s Aug. 1, 2012 trading incident that disrupted the markets.<\/p>\n<p>&#8220;An SEC investigation found that Knight Capital did not have adequate safeguards in place to limit the risks posed by its access to the markets, and failed as a result to prevent the entry of millions of erroneous orders.\u00a0 Knight Capital also failed to conduct adequate reviews of the effectiveness of its controls.&#8221; The SEC said.<\/p>\n<p>\u201cThe market access rule is essential for protecting the markets, and Knight Capital\u2019s violations put both the firm and the markets at risk,\u201d said Andrew Ceresney, co-director of the SEC\u2019s Division of Enforcement.\u00a0 \u201cGiven the rapid pace of trading in today\u2019s markets and the potential massive impact of control breakdowns, broker-dealers must be held to the high standards of compliance necessary for the safe and orderly operation of the markets.\u201d<\/p>\n<p>Daniel M. Hawke, chief of the SEC Enforcement Division\u2019s Market Abuse Unit, added, \u201cBrokers and dealers must look at each component in each of their systems and ask themselves what would happen if the component malfunctions and what safety nets are in place to limit the harm it could cause.\u00a0 Knight Capital\u2019s failure to ask these questions had catastrophic consequences.\u201d<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) \u00a0&#8211; \u00a0Hedge fund Manager Knight Capital Americas LLC has agreed to pay $12 million to settle charges that it violated the SEC&#8217;s market access rule in connection with the firm\u2019s Aug. 1, 2012 trading incident that disrupted [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,16034,3],"tags":[],"class_list":["post-38684","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-regulation","category-hedge-fund-rulings","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=38684"}],"version-history":[{"count":5,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38684\/revisions"}],"predecessor-version":[{"id":38689,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38684\/revisions\/38689"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=38684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=38684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=38684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}