How the Biggest E-Mini Futures Trade of 2016 Sent the Market Soaring

Transaction, valued at $1.8 billion, was reminiscent of trade that led to 2010 ‘Flash Crash’

A $1.8 billion futures trade that fueled buying in the U.S. stock market on Wednesday was the biggest transaction of its kind all year, according to new analysis, and comparable in size to the “fat finger” trade said to have set off the May 2010 “flash crash.”

The analysis by MayStreet LLC, a market-data firm, shows that an unknown buyer on Dec. 7 purchased around 16,000 E-mini S&P 500 futures contracts at 1:21 p.m. New York time.

“It was a massive trade and it happened quickly,” said Mehmet Kinak, head of electronic trading at T. Rowe Price Group Inc. read more »

SEC Files Charges in $26 Million Stock Manipulation Scheme

The Securities and Exchange Commission today charged two New Jersey-based traders with manipulating more than 2,000 NYSE- and NASDAQ-traded stocks and reaping more than $26 million in profits from their successful trades.

The SEC alleges that Joseph Taub and Elazar Shmalo utilized dozens of accounts at various brokerage firms to carry out their scheme undetected, typically using two at a time to engage in a flurry of manipulative trading activity that usually lasted less than five minutes.  According to the SEC’s complaint, they would use one account to buy a position in a stock, and then use a second account to place a series of small buy orders to walk up the price for the first account to sell its larger position into the market at an artificially high price for significant profits.  In some instances before the first account purchased its position in a stock, they had the second account place a series of smaller sell orders to drive down the price of the stock, allowing the first account to buy its larger position in that stock at the artificially lowered price. read more »

U.S. top court rejects AIG ex-CEO Hank Greenberg's appeal

The U.S. Supreme Court on Monday rejected former American International Group CEO Maurice "Hank" Greenberg's bid to escape civil fraud charges in New York accusing him of orchestrating sham transactions at the insurer.

The justices left in place a June ruling by the New York Court of Appeals that his trial on charges brought by the New York Attorney General's Office could proceed. The non-jury trial of Greenberg, 91, started in September. He has already testified in his own defense.

But the parties agreed at the end of November to put the trial on hold until January while they enter into mediation aimed at resolving the case. read more »

Argentine firm reaches $112.8 million deal with U.S. in FIFA probe

An Argentine sports media company has agreed to pay about $112.8 million as part of a deal resolving U.S. charges stemming a wide-ranging bribery probe involving FIFA, soccer's world governing body, according to court documents filed on Tuesday.

The deferred prosecution agreement with Torneos y Competencias SA, whose former chief executive pleaded guilty last year to engaging in schemes to bribe soccer officials, was disclosed in court papers filed in federal court in Brooklyn.

Under the deal, Toreos agreed to forfeit $89 million and pay a $23.76 million penalty. Prosecutors charged it with one count of wire fraud conspiracy, which will be dropped if it abides by the deferred prosecution agreement's terms for four years. read more »

Alexion Pharmaceuticals says CEO, CFO resign, shares slump

Alexion Pharmaceuticals Inc's chief executive officer and chief financial officer resigned, a month after the drugmaker said it was investigating allegations related to sales practices of its flagship drug.

Alexion's shares were down 13 percent at $114.83 on Monday.

The company said David Brennan, board member and former AstraZeneca Plc chief, would replace CEO David Hallal on an interim basis.

Alexion's board had lost confidence in the drugmaker's CEO and CFO, a source familiar with the matter told Reuters.

The company had disclosed last month that it was investigating allegations made by a former employee regarding sales practices involving its costly blood disorder drug, Soliris.

"We suspect that the handling of the whistleblower case led to a fight for control of the board, which the CEO/CFO lost," Piper Jaffray analyst Joshua Schimmer wrote in a client note. read more »