United States Securities and Exchange Commission (SEC
Securities and Exchange Commission (SEC)
The Securities and Exchange Commission (SEC) is one of the best-known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and limiting abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating United States stock and options exchanges.
The Securities and Exchange Commission (SEC) is one of the best-known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and limiting abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating United States stock and options exchanges.
Read this term) fined Bloomberg LP $5 million for allegedly failing to disclose certain information to clients regarding BVAL, its paid-subscription product that provides daily fixed-income price assessments. The securities regulator disclosed the fine in A declaration released on Monday.
According to the SEC, between at least 2016 and October last year, the data and media company did not inform its BVAL subscribers that its valuations for certain fixed income securities could be based on a single data entry, like a broker quote. The SEC said this is problematic because such a source does not match the methodologies the company has previously disclosed to its clients.
The SEC further explained that Bloomberg did not make this disclosure despite being aware that clients such as mutual funds may depend on BVAL price valuations when calculating the value of their assets. They are also likely to assess their investments in government, supranational, agency, corporate and municipal bonds as well as securitized products using data from BVAL, the regulator added.
Watch this recent FMLS22 session on how global dynamics and digitalization are influencing market data.
According to the SEC, the purposes for which Bloomberg’s BVALs are deployed mean that the prices of the paid subscription service can influence the prices at which securities are offered or traded. As a result of this “misleading disclosure”, Bloomberg therefore violated Sections 17(a)(2) of the US Securities Act.
The regulator noted that Bloomberg agreed to pay the monetary fine without admitting or denying his charges. The company also pledged to avoid future violations of the law. Additionally, Bloomberg has voluntarily taken corrective action to improve its BVAL service, the regulator said.
Osman Nawaz, head of the complex financial instruments unit in the SEC’s Division of Enforcement, explained that because Bloomberg and other pricing service providers play a critical role in fixed income markets, they should always provide accurate information about their evaluation process to their clients.
United States Securities and Exchange Commission (SEC
Securities and Exchange Commission (SEC)
The Securities and Exchange Commission (SEC) is one of the best-known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and limiting abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating United States stock and options exchanges.
The Securities and Exchange Commission (SEC) is one of the best-known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and limiting abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating United States stock and options exchanges.
Read this term) fined Bloomberg LP $5 million for allegedly failing to disclose certain information to clients regarding BVAL, its paid-subscription product that provides daily fixed-income price assessments. The securities regulator disclosed the fine in A declaration released on Monday.
According to the SEC, between at least 2016 and October last year, the data and media company did not inform its BVAL subscribers that its valuations for certain fixed income securities could be based on a single data entry, like a broker quote. The SEC said this is problematic because such a source does not match the methodologies the company has previously disclosed to its clients.
The SEC further explained that Bloomberg did not make this disclosure despite being aware that clients such as mutual funds may depend on BVAL price valuations when calculating the value of their assets. They are also likely to assess their investments in government, supranational, agency, corporate and municipal bonds as well as securitized products using data from BVAL, the regulator added.
Watch this recent FMLS22 session on how global dynamics and digitalization are influencing market data.
According to the SEC, the purposes for which Bloomberg’s BVALs are deployed mean that the prices of the paid subscription service can influence the prices at which securities are offered or traded. As a result of this “misleading disclosure”, Bloomberg therefore violated Sections 17(a)(2) of the US Securities Act.
The regulator noted that Bloomberg agreed to pay the monetary fine without admitting or denying his charges. The company also pledged to avoid future violations of the law. Additionally, Bloomberg has voluntarily taken corrective action to improve its BVAL service, the regulator said.
Osman Nawaz, head of the complex financial instruments unit in the SEC’s Division of Enforcement, explained that because Bloomberg and other pricing service providers play a critical role in fixed income markets, they should always provide accurate information about their evaluation process to their clients.
