Defendant Name: Knight Financial Products, LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: Citigroup Inc.
SIC Code: 6021
CUSIP: 17296742

Initial Case Details

Legal Case Name In the Matter of Knight Financial Products, LLC
First Document Date 04-Mar-2009
Initial Filing Format Administrative Action
File Number 3-13393
Allegation Type Broker Dealer

Violations Alleged

Section 11(b) Exchange Act; Rule 11b-1 Exchange Act


First Resolution Date 04-Mar-2009
Headline Total Penalty and Disgorgement

See Related Documents

Related Documents:

34-59504 04-Mar-2009 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Sections 15(b)(4) and 21C of the Securities Exchange Act of 1934
On March 4, 2009, the SEC instituted settled administrative and cease-and-desist proceedings stating: "This matter involves violations by KFP of its basic obligation as a specialist to serve public customer orders over its own proprietary interests. As a specialist firm on each of the Exchanges,2 KFP had a general duty to match executable public customer or “agency” buy and sell orders and not to fill customer orders through trades from the firm’s own account when those customer orders could be matched with other customer orders. From 1999 through 2004 (the “Relevant Period”), KFP violated this obligation by filling orders through proprietary trades rather than through other customer orders, thereby causing customer orders to be disadvantaged by approximately $1.7 million."
2009-42_3-13393 04-Mar-2009 Press Release--Administrative Proceeding
SEC Charges 14 Specialist Firms for Improper Proprietary Trading
The SEC stated that: "[It] brought enforcement actions against 14 specialist firms for unlawful proprietary trading on several regional and options exchanges. The firms agreed to settle the SEC's charges by collectively paying nearly $70 million in disgorgement and penalties. The SEC charged the specialist firms for violating their fundamental obligation to serve public customer orders over their own proprietary interests by "trading ahead" of customer orders, or "interpositioning" the firms' proprietary accounts between customer orders."