WASHINGTON, June 5 (Reuters) - The U.S. Commodity Futures Trading Commission on Tuesday ordered Morgan Stanley to pay $5 million to settle charges it executed unlawful noncompetitive trades.
The CFTC said Morgan Stanley executed, processed and reported off-exchange futures trades to the Chicago Mercantile Exchange and Chicago Board of Trade as exchanges for related positions (EFRPs) over an 18-month period.
The EFRPs constituted "fictitious sales" because the futures trades were executed noncompetitively and not in accordance with exchange rules, the CFTC said.
(Reporting By Karey Wutkowski; editing by Jeffrey Benkoe)
((email@example.com)) Keywords: MORGANSTANLEY CFTC/
C Reuters 2012. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing, or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.