An investigation for investors in NASDAQ:ETFC shares over potential securities laws violations by E*TRADE Financial and certain of its directors and officers in connection certain financial statements was announced.
Investors who purchased shares of E*TRADE Financial Corp (NASDAQ:ETFC), have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of E*TRADE Financial Corp (NASDAQ:ETFC) concerning whether a series of statements by E*TRADE Financial regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
E*TRADE Financial Corp reported that its annual Total Revenue declined from over $1.81 billion in 2014 to over $1.42 billion in 2015 and that its Net Income declined from $293 million in 2014 to $268 million in 2015.
On June 2, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that it had censured and fined E*Trade Securities LLC, a wholly owned subsidiary of E*TRADE Financial Corp, a total of $900,000 for failing to conduct an adequate review of the quality of execution of its customers’ orders and for supervisory deficiencies concerning the protection of customer information.
According to the announcement by FINRA, E*Trade Securities LLC provides online securities investing and trading services for retail customers, and routes its customers’ orders to various exchanges and non-exchange market centers. Firms routing customer orders are required to assess the quality of competing markets to which it directs order flow and periodically conduct “regular and rigorous reviews” of the quality of the executions of its customers’ orders to determine whether any material differences in execution quality exist among the markets trading the security. In an effort to comply with the foregoing, E*Trade established a Best Execution Committee to review execution quality it received on its customers’ orders.
FINRA found that, the Best Execution lacked sufficiently accurate information to reasonably assess the execution quality it provided its customers, failed to take into account internalized order flow sent to its affiliated broker-dealer market maker G1 Execution Services, and failed to adequately consider the actual execution quality provided by the market centers to which it routed orders.
In addition, E*Trade Securities regularly accepted requests from G1 Execution Services to change prioritization in E*Trade Securities’ order routing system and to redirect certain order flow, without determining whether these changes would improve the quality of execution received by its customers. Finally, FINRA also found that E*Trade Securities did not have adequate systems and controls in place to ensure that there was no misuse of confidential customer order information by individuals dually registered with E*Trade Securities and G1 Execution Services.
Shares of E*TRADE Financial Corp closed on June 21, 201, at $25.07 per share.
Those who purchased NASDAQ:ETFC shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
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