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I couldn't help but notice (or not notice) the absence of any dates when the biased routing to G1 Execution Services occurred.
In 2014, E*Trade Securities was fined $2.5M along with E*Trade Capital Markets (then a unit of E*Trade Financial Corp, now separated and called G1 Execution Services). This was for improperly selling penny stocks. This was for violations in 2007-2011. That is, a 3+ year lag.
The current FINRA action appears to be the culmination of an investigation that likewise began three years prior. That is, the investigation was for 2013 (or earlier) improprieties.
Why this matters is that G1 Execution Services was still a unit of E*Trade until February 2014. So while the originally cited column describes G1X as "affiliated" with E*Trade, perhaps E*Trade was more directly self-dealing than "affiliated" might suggest.
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In 2014, E*Trade Securities was fined $2.5M along with E*Trade Capital Markets (then a unit of E*Trade Financial Corp, now separated and called G1 Execution Services). This was for improperly selling penny stocks. This was for violations in 2007-2011. That is, a 3+ year lag.
The current FINRA action appears to be the culmination of an investigation that likewise began three years prior. That is, the investigation was for 2013 (or earlier) improprieties.
Why this matters is that G1 Execution Services was still a unit of E*Trade until February 2014. So while the originally cited column describes G1X as "affiliated" with E*Trade, perhaps E*Trade was more directly self-dealing than "affiliated" might suggest.
http://www.reuters.com/article/us-sec-etrade-idUSKCN0HY1YC20141009
(Article on earlier violation, noting the current FINRA investigation had started in 2013).