Yoomi Lee | Bloomberg Law SEC Press Release No. PR-2011-240 (Nov. 10, 2011); Administrative Proceeding File No. 3-14620 (Nov. 10, 2011) The Securities and Exchange Commission (SEC) announced that UBS Securities LLC (UBS) settled charges for inaccurately providing and recording "locates" to its customers seeking to execute short sales. The SEC charged that UBS violated Section 17(a) of the Securities Exchange Act of 1934 and Rule 203(b) of Regulation SHO. Without admitting or denying the SEC's charges, UBS agreed to (1) cease and desist from committing or causing any future violations; (2) pay $8 million in penalties; and (3) retain an independent consultant to conduct a comprehensive review of its securities lending desk's policies, procedures, and practices regarding granting locate requests.
Locate Requirement Violations
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