Merrill Lynch Pays $250,000 Fine
Dec. 22, 1989
CHICAGO (AP) _ Merrill Lynch & Co. has agreed to pay a $250,000 fine to the Chicago Board of Trade for failing to pay fees for exchange services, the exchange said Friday.
The Board of Trade also announced a $50,000 fine levied against Fossett Corp., a futures trading firm, and a 30-day suspension and $50,000 fine for an associate member of the exchange who overstepped his privileges.
Merrill Lynch neither admitted nor denied the exchange's allegations, the Board of Trade said. The company agreed to pay certain fees and interest charges in addition to the fine.
Fossett was charged by an exchange committee with failing to maintain adequate capital, an allegation the company neither admitted nor denied. In addition to the fine, the company agreed to take corrective measures to ensure against future violations of minimum capital requirements.
The exchange's board of directors found that Anthony Stack, an associate member of the Board of Trade, allowed his agents or employees to act as brokers and handle orders outside the scope of his associate member privileges.
The board also concluded Stack had helped a non-member gain admission to and make transactions on the exchange floor.