South Florida Arbitration & Litigation Lawyer Blog
Investment Advisor and Broker/Dealer Fraud, Misrepresentation and Mismanagement FINRA Arbitration and Litigation Lawyer Russell L. Forkey, Esq.
December, 2010:
Tyler McKittrick Eddy (CRD #4148945, Registered Rep., New York, New York) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $200,000 and suspended from association with any FINRA member in any capacity for one month. Without admitting or denying the findings, Eddy consented to the described sanctions and to the entry of findings that he engaged in improper communications with other inter-dealer brokers about credit default swaps (CDS) dealers’ brokerage fee rate reduction proposals concerning CDS instruments and, therefore, failed to abide by his duty to observe high standards of commercial honor and just and equitable principles of trade. The findings stated that these communications generally arose after individual CDS dealers sought to renegotiate the CDS brokerage fees they paid by transmitting schedules of their proposed brokerage rate reductions to multiple interdealer brokers. The findings also stated that while many of the communications involved one-to-one discussions between Eddy and personnel from other CDS interdealer brokerage firms, some of the communications referred to similar types of interactions about the schedules involving additional inter-dealer brokerage firms.
The suspension was in effect from November 15, 2010, through December 14, 2010. (FINRA Case #2006005158310).