10 Principles For Enhancing IT Control Programs

Law360, New York (June 19, 2007, 12:00 AM EDT) -- On May 9, 2007, the Securities Exchange Commission brought an administrative proceeding against a large investment bank alleging that the firm embedded undisclosed mark-ups and mark-downs in certain OTC executions and delayed execution of other orders, thereby not providing best execution to its retail customers(In re Morgan Stanley & Co., Securities Exchange Act Release No. 55726 [May 9, 2007]). The SEC alleged that the firm was reckless in improperly programming its automated OTC marketmaker system, which caused the errors.

Without admitting or denying the allegations, the...
To view the full article, register now.