Merrill Case Raises Questions Of Blame In Market Timing

Law360, New York (January 6, 2006, 12:00 AM EST) -- A case involving Merrill Lynch & Co. raises far-reaching questions about whether individual traders or the firms that employ them deserve the ultimate blame in the barrage of market-timing scandals that have rocked the industry, experts say.

In a blow to Merrill, an arbitration panel ruled last month to award $14 million to three traders, accused of engaging in market timing schemes, for “lost income, pain and suffering” resulting from wrongful termination.

While market timing, in which short-term trades are made with high frequency, is not...
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