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BUSINESS
By Bloomberg Business News | August 5, 1995
NEW YORK -- A federal judge threw out a lawsuit accusing 33 Nasdaq market makers of colluding to keep price spreads on Nasdaq stocks artificially wide, but left the door open for the plaintiffs to file an amended suit.In a surprise decision, U.S. District Judge Robert Sweet in Manhattan ruled that the plaintiffs' claims of price fixing among market makers were too vague because they didn't specify which stocks were allegedly manipulated.Rather than giving the securities firms a complete victory, the judge granted the plaintiffs permission to file an amended lawsuit in which they would name specific stocks.
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NEWS
By Scott Calvert and Scott Calvert,scott.calvert@baltsun.com | November 22, 2009
When ex-University of Maryland pharmacologist Clinton McCracken began ordering narcotics from a Web site in the Philippines, he joined a booming marketplace that has exploded with the Internet's rise. But federal officials say consumers face real risks as they increasingly go online to buy pharmaceuticals of all kinds. "You don't know where these are made, or how they're made or under what conditions," said Ilisa Bernstein, the Food and Drug Administration's director of pharmacy affairs.
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BUSINESS
By Susan Antilla and Susan Antilla,BLOOMBERG NEWS | March 10, 1997
THERE'S MUCH ado (again) about an automated stock-trading system that goes by the acronym SOES.SOES (rhymes with woes) stands for the Small Order Execution System. It's a computerized trading system that automatically executes small trades at the best price posted among over-the-counter market-makers.It never was a vehicle for Aunt Matilda's trades, as hyped by the National Association of Securities Dealers after the 1987 stock market crash. Instead, it has become the riding horse of professional traders, much-maligned as "SOES bandits."
BUSINESS
By NEW YORK TIMES NEWS SERVICE | February 19, 2004
NEW YORK - The chief executive of the New York Stock Exchange defended its market makers and its 211-year-old trading model yesterday, arguing that the changes he has put in place over the past month should be sufficient to appease the Big Board's critics. The remarks of the exchange's chief, John A. Thain, came just two days before he is scheduled to testify before a congressional panel on the viability of the exchange's trading system, which relies on a network of specialist traders to guide investors to the best possible price for a stock.
BUSINESS
By NEW YORK TIMES NEWS SERVICE | September 26, 1995
NEW YORK -- The Nasdaq stock market formally proposed a plan yesterday that would make it easier for individual investors to trade at better prices than they now get.The proposal, called Naqcess, would make it possible for the first time for an individual to reduce the spread between bid and asked prices that is shown on the nearly 300,000 terminals around the world that carry Nasdaq data.The proposal does not go as far as one that the Securities and Exchange Commission plans to propose later this week.
BUSINESS
By Timothy J. Mullaney | March 26, 1995
The past year has been a tough one for the Nasdaq stock market, the second largest in the nation. Its competitive edge has always been its reliance on multiple broker-dealers who "make markets" in individual stocks, compared to the specialist system on the New York Stock Exchange, where a single firm coordinates the trading of each listed company's shares.Not everyone is agreed that the system works. Two academics, William Christie of Vanderbilt University and Paul Schultz of Ohio State, contend that market makers routinely round stock prices off to the nearest 25 cents when trading with small customers, while institutions and other market makers get prices rounded off by as little as 2 cents.
BUSINESS
By New York Times News Service | October 20, 1994
NEW YORK -- The Justice Department said yesterday that it was investigating the dealers who make Nasdaq markets, an inquiry that intensifies the pressures on Nasdaq to change in ways that could fundamentally alter the nature of the market.At a minimum, the pressures seem likely to cut profit margins for the dealers at the center of the market.The federal inquiry appears to be focusing on suspicion of price-fixing in what investors are charged when they buy and sell stocks on Nasdaq, the network of securities dealers linked by computer and phone.
FEATURES
By SUSAN BONDY | June 12, 1994
Q: Why is a stock's "bid" price always lower than its "asked" price?A: The "bid" price is the price someone is willing to pay for your shares. The "asked" price is the price at which someone will sell the stock to you.The actual price at which you buy or sell might be somewhere between the bid price and the asked price. The difference between the bid price and the asked price is called the "spread" or the "markup."On the New York and American Stock Exchanges, each stock is assigned to a "specialist," whose primary function is to maintain an orderly market in that stock -- that is, whenever possible, preventing the stock from swinging wildly on any one day. The specialist generally "makes book" by matching up buyers and sellers, who buy and sell simultaneously at the same price, often between the bid and asked prices.
BUSINESS
By Bloomberg Business News | June 3, 1995
NEW YORK -- The Justice Department is speeding up its antitrust probe of the Nasdaq stock market by imposing an early-summer deadline for investigators to come up with preliminary results of their findings.Assistant Attorney General Anne Bingaman has asked the government's team of a half-dozen attorneys and economists looking into possible collusion among Nasdaq dealers to report their findings by the end of June, a person at the Justice Department said.The securities industry was skeptical the government has found any smoking gun to prove that Nasdaq market makers colluded to keep the difference, or spreads, between stock bid and ask prices unusually large.
BUSINESS
By Los Angeles Times | November 15, 1994
NEW YORK -- The Securities and Exchange Commission said yesterday that it is launching an extraordinary top-to-bottom review of the Nasdaq stock market, looking into allegations that its trading practices harm small investors and violate federal securities rules.Separately, Nasdaq's parent, the Washington-based National Association of Securities Dealers, announced that it will form its own "select committee" of respected securities industry figures to conduct a wide-ranging reassessment of Nasdaq's operations.
BUSINESS
By BLOOMBERG NEWS | January 15, 2003
WASHINGTON - Day-trading firm Heartland Securities Corp. and six brokers agreed to pay $70.2 million to settle charges that they made tens of millions of dollars in illegal profits exploiting a Nasdaq stock market trading system intended for individual investors. Sheldon Maschler, Erik Maschler, Jeffrey Citron and Michael McCarty made thousands of illegal proprietary trades on Nasdaq's small-order execution system (SOES) from 1993 to 2001, the Securities and Exchange Commission said. The defendants hid their trades by creating fictitious books and filing false regulatory reports.
BUSINESS
By BLOOMBERG NEWS | September 12, 2000
NEW YORK - Goldman Sachs Group Inc. agreed to buy Spear, Leeds & Kellogg LP yesterday for $7.5 billion in cash, stock and debt, making the biggest arranger of new equity sales the largest stock-market middleman. Goldman will pay $4.4 billion in stock and $2.1 billion in cash, plus assume $1 billion in debt for the 69-year-old partnership. Goldman will also pay $900 million in Goldman stock to retain Spear Leeds employees, but the figure is not considered part of the purchase price. Spear Leeds is the top specialist firm on the New York Stock Exchange and the No. 3 market maker on the Nasdaq stock market.
BUSINESS
By Susan Antilla and Susan Antilla,BLOOMBERG NEWS | March 10, 1997
THERE'S MUCH ado (again) about an automated stock-trading system that goes by the acronym SOES.SOES (rhymes with woes) stands for the Small Order Execution System. It's a computerized trading system that automatically executes small trades at the best price posted among over-the-counter market-makers.It never was a vehicle for Aunt Matilda's trades, as hyped by the National Association of Securities Dealers after the 1987 stock market crash. Instead, it has become the riding horse of professional traders, much-maligned as "SOES bandits."
BUSINESS
By Kevin L. McQuaid and Kevin L. McQuaid,SUN STAFF | July 8, 1996
Philip C. Iglehart and Dennis P. Malone would rather be lucky than good. Fortunately for them, they've been both.For the past two years, the two Colliers Pinkard principals have dominated investment-driven commercial real estate sales in the Baltimore area, capitalizing on interlocking trends and enhancing their reputations in the process.The duo's latest sales success occurred late last month, when Winchester Commercial garnered $5.6 million from the sale of 47 acres in the Meadowridge Business Park in Elkridge to Security Capital Industrial Trust.
BUSINESS
By NEW YORK TIMES NEWS SERVICE | September 26, 1995
NEW YORK -- The Nasdaq stock market formally proposed a plan yesterday that would make it easier for individual investors to trade at better prices than they now get.The proposal, called Naqcess, would make it possible for the first time for an individual to reduce the spread between bid and asked prices that is shown on the nearly 300,000 terminals around the world that carry Nasdaq data.The proposal does not go as far as one that the Securities and Exchange Commission plans to propose later this week.
BUSINESS
By Bloomberg Business News | August 5, 1995
NEW YORK -- A federal judge threw out a lawsuit accusing 33 Nasdaq market makers of colluding to keep price spreads on Nasdaq stocks artificially wide, but left the door open for the plaintiffs to file an amended suit.In a surprise decision, U.S. District Judge Robert Sweet in Manhattan ruled that the plaintiffs' claims of price fixing among market makers were too vague because they didn't specify which stocks were allegedly manipulated.Rather than giving the securities firms a complete victory, the judge granted the plaintiffs permission to file an amended lawsuit in which they would name specific stocks.
BUSINESS
By BLOOMBERG NEWS | January 15, 2003
WASHINGTON - Day-trading firm Heartland Securities Corp. and six brokers agreed to pay $70.2 million to settle charges that they made tens of millions of dollars in illegal profits exploiting a Nasdaq stock market trading system intended for individual investors. Sheldon Maschler, Erik Maschler, Jeffrey Citron and Michael McCarty made thousands of illegal proprietary trades on Nasdaq's small-order execution system (SOES) from 1993 to 2001, the Securities and Exchange Commission said. The defendants hid their trades by creating fictitious books and filing false regulatory reports.
BUSINESS
By David Conn and David Conn,Sun Staff Writer | July 27, 1994
Alex. Brown & Sons Inc., Legg Mason Wood Walker Inc. and nearly two dozen other Wall Street brokerage firms are accused in a series of federal lawsuits of conspiring to raise prices and lower profits for retail customers who trade securities on the Nasdaq system.The suits charge the investment firms with a variety of actions intended to fix prices for securities on the Rockville-based computerized trading system, originally known as the National Association of Securities Dealers Automated Quotation system.
BUSINESS
By Bloomberg Business News | June 3, 1995
NEW YORK -- The Justice Department is speeding up its antitrust probe of the Nasdaq stock market by imposing an early-summer deadline for investigators to come up with preliminary results of their findings.Assistant Attorney General Anne Bingaman has asked the government's team of a half-dozen attorneys and economists looking into possible collusion among Nasdaq dealers to report their findings by the end of June, a person at the Justice Department said.The securities industry was skeptical the government has found any smoking gun to prove that Nasdaq market makers colluded to keep the difference, or spreads, between stock bid and ask prices unusually large.
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