FINRA Fines CDS Brokers $4.3M In Rate-Fixing Action

Law360, New York (June 25, 2010, 3:45 PM EDT) -- The Financial Industry Regulatory Authority has fined Phoenix Derivatives Group LLC and eight brokers, three of whom work with the firm, a total of $4.3 million for communicating with each other about fixing brokerage rates in the wholesale credit default swap market.

The regulator said Thursday that New York-based Phoenix and the three co-heads of its derivatives desk had tried to improperly influence other brokerage firms and their employees about CDS dealers' proposed brokerage fee rates in 2005 and 2006.

Phoenix brokers deal between the commercial...
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