January 24, 2017
Citigroup Global Markets, Inc., Morgan Stanley Smith Barney LLC
SANCTION AMOUNT: $5,927,471.22
Defendants: Citigroup Global Markets, Inc., Morgan Stanley Smith Barney LLC
Settlement of charges of false and misleading statements to Morgan Stanley customers about a foreign exchange trading program known as CitiFX Alpha from August 2010 to July 2011 (Citigroup held a 49 percent ownership interest in Morgan Stanley at the time, and its representatives allegedly participated in the pitch). The SEC found that written and verbal presentations failed to adequately disclose that investors could be placed into the program using substantially more leverage than advertised and markups would be charged on each trade.
- Key Docs
- Official SEC press release