TD Bank Group has agreed to pay more than US$28 million after an investigation into manipulation of the U.S. Treasuries market by one of its traders.
The deferred prosecution agreement with the U.S. Department of Justice has TD agreeing that a former employee created a false appearance of supply or demand in the market by placing bids or offers, only to cancel them before completion.
The agreement says hundreds of so-called spoof orders were placed, amounting to tens of billions of dollars of false supply and demand, in an effort to artificially increase the market prices of those products….