ARTICLE
21 December 2018

Broker Dealer Settles Exchange Charges For Securities Offering Violations

CW
Cadwalader, Wickersham & Taft LLP

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Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
A broker-dealer agreed to settle NASDAQ Stock Market LLC ("Nasdaq") charges of stabilizing in connection with an offering of a security.
United States Corporate/Commercial Law

A broker-dealer agreed to settle NASDAQ Stock Market LLC ("Nasdaq") charges of stabilizing in connection with an offering of a security.

According to the Letter of Acceptance, Waiver and Consent, Chardan Capital Markets LLC ("Chardan") allegedly entered stabilizing bids into the marketplace with regard to the offering of certain securities without providing notice of its intent to partake in such activity. In addition, FINRA and NYSE Arca, Inc. are undertaking concurrent disciplinary actions regarding Chardan's alleged failure to have adequate written supervisory procedures in place.

To settle the charges, Chardan agreed: (i) to a censure, (ii) to pay a monetary fine of $16,500 and (iii) to provide two written reports on the implementation and effectiveness of policies and procedures to ensure compliance with Rule 104 of Regulation M and Nasdaq Rule 4614.

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