FINRA Fines Broker For Short-Selling Violations

Law360, New York (March 10, 2009, 12:00 AM EDT) -- Securities broker First New York Securities LLC and four of its traders have been ordered to pay more than $436,000 by the Financial Industry Regulatory Authority, which alleged that they improperly covered short positions with secondary offering shares.

FINRA announced Tuesday that FNYS was ordered to pay a fine of $170,000 and disgorgement of $171,000, while four of its traders were fined a total of $95,000.

FNYS and the traders allegedly violated Rule 105 of the U.S. Securities and Exchange Commission's Regulation M, which is intended...
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