Thoughts from Miss Monica on the continuing sleaze and corruption in the financial world.
Illegal market timing is related to a mutual fund’s disclosure that it does *not* engage in excessive trading practices, such as market timing, while at the same time keeping secret that the traders in the mutual fund firm are actually able to and encouraged to make market timing trades to boost revenues (whether their own, a special client’s, or the firm’s overall).
Late trading is the practice of trading after the market closes at prices established before the market closed. This often happens in funds earmarked for market timing, and in many cases, generates the bulk of illegal profits made in those funds.
Here is a good example:
Also, Franklin Resources just got whacked again for market timing … see LA Times today.
Securities regulator hits Franklin Resources with new charges, saying it’s shading the facts.