Defendant Name: TD Securities (USA) LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: The Toronto-Dominion Bank
SIC Code: 6021
CUSIP: 89116050

Initial Case Details

Legal Case Name In the Matter of TD Securities (USA) LLC
First Document Date 30-Sep-2024
Initial Filing Format Administrative Action
File Number 3-22223
Allegation Type Broker Dealer

Violations Alleged

Securities Act
• Sec 17(a)(3)
Other
• Failure to supervise under Section 15(b)(4)(E) Exchange Act

Resolutions

First Resolution Date 30-Sep-2024
Headline Total Penalty and Disgorgement $7,035,700

Related Documents:

33-11314 30-Sep-2024 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On September 30, 2024, the SEC instituted settled administrative and cease-and-desist proceedings against TD Securities (USA) LLC, stating: "From April 2018 to May 2019 (the "Relevant Period"), a trader employed by TDS in its U.S. Treasury trading desk (the "Trader") engaged in hundreds of instances of "spoofing" in the U.S. Treasury cash market. This entailed creating the false appearance of buy or sell interest by entering orders on one side of the market, which the Trader had no intention of executing, to obtain more favorable execution prices on bona fide orders on the other side of the market. To mask his true intentions, the Trader employed so called "iceberg" orders, which hid from the market the true size of the bona fide orders. Once these iceberg orders were successfully filled, in whole or in part, the Trader would cancel the non-bona fide buys or sells."
2024-160 30-Sep-2024 Press Release--Administrative Proceeding
TD Securities Charged in Spoofing Scheme; Firm also failed to supervise the head of its U.S. Treasuries desk
On September 30, 2024, the SEC "today announced charges against registered broker-dealer TD Securities (USA) LLC for manipulating the U.S. Treasury cash securities market through an illicit trading strategy known as spoofing. The bank was also charged for failing to supervise the then-head of its U.S. Treasuries trading desk, who allegedly made hundreds of illegal trades over a 13-month period."