Merrill fined $450k by Hong Kong regulator

HONG KONG – The Securities and Futures Commission of Hong Kong (SFC) has fined Merrill Lynch $450,000 after an executive overvalued a trading book.

Between December 2007 and October 2008, a managing director inflated the price of a book of illiquid securities by approximately $25 million, concealing actual losses. The executive, who has not been named, illicitly used the bank’s computer systems to change volatility parameters in the valuation model.

According to a statement from the SFC:

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