NEW YORK: The New York Stock Exchange said on Wednesday that it had fined Morgan Stanley $500,000 for filing "inaccurate" trading reports on the investment bank's positions in certain US-listed stocks.
The latest sanction comes after Morgan Stanley and one of its units were fined $2.9 million in September by the NASD regulator for incorrectly reporting thousands of Nasdaq-related transactions.
The NYSE said officials found that Morgan Stanley had violated exchange rules "for an unknown, but significant number of years."
Specifically, Morgan Stanley was accused of failing to report its "short" positions in certain securities.
Traders use so-called short positions to bet that a stock's price will fall in the future. A trader borrows a stock and then sells it on the presumption that it can be repurchased later at a lower price and thus net a tidy profit.
Morgan Stanley consented to the finding without admitting or denying guilt.
The fine will go equally to the NYSE, NASD and the American Stock Exchange.
