The SEC charged that the advisor used
omnibus accounts and allocated trades at the end of the trading day.
He gave some specific examples of transactions that are too often opaque, such as so-called
omnibus accounts, which combine various securities transactions.
Indicating the advent of derivatives, efforts are now afoot to introduce
omnibus accounts, which are expected to come once the central counterparty (CCP) is in place during the exchange's second phase of development.
The activity in question highlights the need for vigilance in the securities industry, where vehicles such as
omnibus accounts, as well as the intermediated nature of the securities custody industry itself, can serve to obscure the beneficial ownership interests of sanctioned parties," the Treasury said.
The London affiliate utilized code names to disguise the identities of the sanctioned entities and maintained sub-accounts in these code names in its
omnibus accounts maintained in the US.
These failures, FINRA continued, "extended to potentially suspicious trades made in
omnibus accounts of the firm's foreign affiliates.
Qatar Stock Exchange (QSE) is all geared up to introduce securities lending and borrowing, margin trading,
omnibus accounts and a central counterparty (CCP) as part of its measures to further enhance the operational efficiency and attractiveness to foreign investors.
