Defendant Name: Goldman Sachs Execution & Clearing, L.P.

Defendant Type: Subsidiary of Public Company

Document Reference: 2009-42_3-13394

Document Details

Legal Case Name In the Matter of Goldman Sachs Execution & Clearing, L.P. and SLK-Hull Derivatives LLC
Document Name SEC Charges 14 Specialist Firms for Improper Proprietary Trading
Document Date 04-Mar-2009
Document Format Administrative Proceeding
File Number 3-13394
Allegation Type Broker Dealer
Document Summary 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."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Monetary Penalties:

Disgorgement

(Penalty was noted in document, but no amount was listed)

Civil Penalty

(Penalty was noted in document, but no amount was listed)

Related Documents:

34-59505 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 against Goldman Sachs Execution & Clearing, L.P. and SLK-Hull Derivatives LLC, stating: "This matter involves violations by GSEC and SHD of their basic obligation as specialists to serve public customer orders over their own proprietary interests. As specialist firms on each of the Exchanges, GSEC and SHD 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 firms’ own accounts when those customer orders could be matched with other customer orders. From 1999 through 2005 (the “Relevant Period”), GSEC and SHD violated this obligation by filling orders through proprietary trades rather than through other customer orders, thereby causing customer orders to be disadvantaged by approximately $6 million."

Other Defendants in Action:

SLK-Hull Derivatives LLC