After weeks of speculation, Morgan Stanley has confirmed that federal investigators have requested information regarding its block trading business. This news was released in Morgan Stanley’s annual 10-K report. Morgan Stanley reported that the bank has been cooperating with this investigation since 2019.
This news comes at a time when the SEC has been cracking down on Fortune 500 companies, such as Tesla, over suspicious market activity.
Christopher Warren, Managing Partner at Warren Law Group states, “It is no secret (or is it?) in the industry that frontrunning happens, and even more so when insiders have advanced knowledge of block trades that are being negotiated privately with venture capital and hedge funds. When the industry players get caught with their hand in the proverbial money jar, it is usually the individual brokers that catch most of the heat from FINRA.”
If your firm starts asking questions regarding your trading activity, or if you are already under investigation by your firm, FINRA, or the SEC for front running or block trading, find an experienced regulatory attorney to guide you through that process before you prejudice yourself, and your career. Contact the attorneys at Warren Law Group at (866) WLGROUP or email email@example.com to schedule your complimentary consultation.