♦Failure to Train Comes at a Price♦
New York Mercantile Exchange Business Conduct Committee panels issued three disciplinary actions effective last Friday that highlight the consequences of inadequate employee training.
In an $85,000 settlement relating to block trade reporting and recordkeeping deficiencies, the panel findings noted that the subject firm “…failed to properly advise its employees as to relevant Exchange rules…”
In a $60,000 settlement relating to block trade reporting deficiencies, the panel findings noted that the subject firm “…failed to properly advise and train its employees as to relevant Exchange rules…”
In a $35,000 settlement relating to wash trade violations, the panel findings noted that the subject firm “…failed to properly advise and train its employee as to relevant Exchange rules…”
We have courses that address these important areas of employee training. Our Market Conduct course covers wash sales and block trading, along with a host of other important topics. Our Noncompetitive Trading course examines block trading in greater detail, along with the rules governing exchange for related positions transactions.
