Goldman defaults US Securities and Exchange Commission (SEC) bare air charges

Source: Internet
Author: User
Keywords US Securities and Exchange Commission
Tags exchange group media media reports short-selling the new the new york
BEIJING, May 5 (Xinhua) The Executive and clearing department of Goldman Sachs Group agreed to pay 450,000 of dollars to the New York-pan-European Exchange Group (NYSE Euronext) and the Securities and Exchange Commission (SEC), according to foreign media reports yesterday.  To settle allegations that the group had violated the regulations governing the short selling of U.S. shares due to bookkeeping errors. According to the SEC's allegations, Goldman Sachs violated the Commission's SHO regulation on short selling, regulation SHO, which had nothing to do with the Commission's alleged fraud on mortgages against Goldman Sachs on April 16,  Rather, it involved a request made by the Commission in September 2008 to require financial institutions to reduce "naked short-selling" trading activities. According to media reports, the Securities and Exchange Commission said today that Goldman Sachs Execution & Clearing LP, a group of its subsidiaries, had initially responded to the provision, but that the group's procedures were inadequate and relied too much on individuals to perform manual tasks and calculations, Without adequate supervision or confirmation of its accuracy. Goldman Sachs did not make any qualitative response to the allegation. "This is the result of an error in the manual handling process after the SEC introduced Rule 204T in October 2008 and has not had any financial impact on our customers," Eder Canadi, a spokesman for the group, said in a statement. Now, we have adopted an improved automated program to avoid future errors.  "Knowledge Link: what is" naked short selling "? The so-called "naked Short-selling" (naked short Selling) means that investors do not borrow shares and sell outright non-existent stocks in the market, and then buy back stocks to gain profits when share prices fall further. A trader who makes "naked short selling" will succeed if he buys shares before the delivery date. Because naked short selling is a non-existent stock, its trading volume can be very large, thus causing a sharp impact on share prices.
Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.