RBC Eyes Showdown Over CFTC Wash-Trading Allegations

Law360, New York (April 3, 2012, 4:27 PM EDT) -- The Royal Bank of Canada on Monday denied allegations that it engaged in a wash-trading scheme to reap tax benefits on hundreds of millions of dollars in stock, possibly setting up a trial against the enforcement-minded U.S. Commodities and Futures Trading Commission.

The bank said that the CFTC has known for years that it would buy shares in U.S. and Canadian companies and mitigate its risk by selling futures contracts linked to those stocks to offshore subsidiaries. The subsidiaries would then sell off the stocks, making...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.