BoA Merrill Lynch Handed $12.5 Million Fine by SEC over Mini-Flash Crashes
Bank of America subsidiary fined over inadequate trading controls leading to market disruptions between 2012 and 2014.

Bank of America Merrill Lynch (Merrill Lynch) has accepted a $12.5 million fine from the Securities and Exchange Commission (SEC) over its failure to implement adequate trading controls that caused at least 15 cases of market disruptions between late-2012 and mid-2014.
An SEC investigation found that due to its "inadequate trading controls", Merrill Lynch failed to prevent erroneous orders being sent to the markets and causing mini-flash crashes, violating the Market Access Rule.
"Mini-flash crashes, such as those caused by Merrill Lynch, can undermine investor confidence in the markets," said Andrew Ceresney, director of the SEC Enforcement Division. "It is essential that broker-dealers with market access have reasonable controls to prevent erroneous orders that disrupt trading."
The penalty, which the SEC states Merrill Lynch accepted "without admitting or denying the findings", is the largest to be imposed since a similar charge was brought against Knight Capital Americas ($12 million) in 2013.
In April last year, the UK Financial Conduct Authority (FCA) imposed a fine of £13.2 million (approximately $19.8 million) on Bank of America Merrill Lynch International (MLI) for submitting more than 35 million incorrect trading reports and failing to report another 121,387 transactions between November 2007 and November 2014.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Operations
Waters Wavelength
Waters Wavelength Podcast: Episode 226 (M&A and people)
On this episode of the Wavelength Podcast, Wei-Shen and Tony talk about the importance of communication when it comes to M&A activity within a company.
Subscribe to Weekly Wrap emails
Most read
- PanAgora’s CIO & head of sustainable investing explain firm’s ESG framework, best practices
- Waters Wrap: Microsoft’s capital markets play (And Algorithmics thoughts)
- Itiviti’s Blueprint for Success—Investing in People and Products
- Confidential computing projects could answer industry’s cloud security questions
- Algorithmics charts new course in year-plus after SS&C acquisition