Citi to pay $38M for ADR ac­tions

The News-Times - - BUSINESS -

The Se­cu­ri­ties & Ex­change Com­mis­sion sanc­tioned Citi $38 mil­lion over its han­dling of Amer­i­can De­posi­tary Re­ceipts that rep­re­sent shares of for­eign com­pa­nies on U.S. stock ex­changes. Citi co­op­er­ated in the in­ves­ti­ga­tion which de­ter­mined it pro­vided ADRs to bro­kers when for­eign shares were not on hand to sup­port those new ADRs, in­flat­ing the num­ber of se­cu­ri­ties on the mar­ket and re­sult­ing in abuse prac­tices like short-sell­ing and div­i­dend ar­bi­trage.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.