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FINRA Fines Merrill $1 Million and $320k Restitution

FINRA Fines Merrill $1 Million and $320k Restitution 150 150 Rex Securities Law

On April 16,2013, FINRA announced resolution of an action against Merrill Lynch for failing to provide best execution in certain customer transactions involfing non-convertible preferred securities executed on one of its proprietary order management systems, the ML BondMarket. In addition FINRA found that Merrill did not have an adequate supervisory system in place.

Merrill was fined $1.05 million and ordered to pay restitution to customers who did not receive best execution on their bond trades of more than $323,000. Firms are required to use reasonable diligence to ensure that the trade is as favorable as possible to the customer under current market conditions. FINRA alleged that Merrill executed 12,259 transactions at prices inferior to the National Best Bid and Offer (NBBO).

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