bank of america 03Bank of America fined $12.5M by SEC over mini ‘flash crashes’

 

This is a charlotteobserver.com article.

 

Bank of America’s Merrill Lynch unit was fined $12.5 million to settle allegations that the broker’s ineffective controls led to multiple orders being sent to markets, resulting in mini-flash crashes.

The Charlotte-based bank set its internal trading limits too high, so they were ineffective and caused market disruptions on at least 15 occasions from late 2012 to mid-2014, according to a statement Monday from the U.S. Securities and Exchange Commission.

They included 99-percent drops in the stocks of Anadarko Petroleum Corp. on May 17, 2013, and Qualys Inc. on April 25, 2013, according to the statement. Another order led to a drop of almost 3 percent in Google’s stock in less than a second on April 22, 2013.

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