Defendant Name:
Knight Financial Products, LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Citigroup Inc.
SIC Code:
6021
CUSIP:
17296742
Document Reference:
34-59504
Document Details
Legal Case Name
In the Matter of Knight Financial Products, LLC
Document Name
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
Document Date
04-Mar-2009
Document Format
Administrative Proceeding
Allegation Type
Broker Dealer
Document Summary
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."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Monetary Penalties:
Disgorgement
Individual:
$1,700,000.00
Shared:
Civil Penalty
Individual:
$340,000.00
Shared: