NASD Fines 10 Companies for Violations
New York Times (07/17/01) Vol. 35, No. 27 p.C4; Lugo, Denise
The brokerage units of Goldman Sachs Group, Merrill Lynch, and
Deutsche Bank are among 10 firms agreeing to pay a total of $473,000 to
settle charges that they violated rules involving pre-trading price
quotes. Pre-trading price quotes cause the so-called "locked markets,"
which automatically shut down dealers' computerized systems and disrupt
trading. The National Association of Securities Dealers is also
bringing cases against the Herzog, Heine & Geduld unit of Merrill; the
Fleet Securities unit of FleetBoston Financial; the Schwab Capital
Markets unit of Charles Schwab; and the Spear Leeds & Kellogg unit of
Goldman Sachs.