Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Tuesday, May 29, 2007

NASD Fines HSBC Brokerage Regarding Government Securities Transactions

NASD today announced that it has fined New York's HSBC Brokerage (HBI) $250,000 for failure to have adequate systems in place to supervise government securities transactions to ensure best execution.  In addition, the firm routed orders to HSBC Securities (HSI), an affiliated firm, without taking adequate steps to ensure that customers would not be harmed in the pricing of these securities. HBI's inability to provide documentary evidence of its supervisory review for best execution of trades inhibited NASD's ability to review transactions for best execution.  In April 2005, HBI merged with HSI.  See NASD Fines HSBC Brokerage for Failure to Supervise Government Securities Transactions for Best Execution.

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