ACTA treaty ‘dead in the water’

The investigation by regulators focused on weekly "huddles" between the bank's analysts and traders from 2006 to 2011, in which the former would share their top short-term trading tips and the latter would discuss their views on the markets. In 2007, according to US regulator the Securities and Exchange Commission (SEC), Goldman established the Asymmetric Service Initiative (ASI) in which analysts shared trading ideas from the huddles with a group of select clients. The SEC alleges that the bank failed to put in place adequate controls to ensure that the ASI did not result in clients, as well as its own traders, learning of and trading on upcoming changes to the stock picks made by Goldman's analysts. "Goldman failed to implement policies and procedures that adequately controlled the risk that research analysts could preview upcoming rating changes with select traders and clients," said Robert Khuzami, the director of enforcement at the SEC. As part of the settlement with the SEC and the Financial Industry Regulatory Authority, Goldman also agreed to be censured and review its policies. The fine comes less than a year after Goldman settled similar allegations made by regulators in Massachusetts. Goldman said it was pleased to have resolved the matter. Shares in the bank were up almost 3pc at $119.24 in early afternoon trading.