TORONTO, July 20 (UPI) -- Canadian Imperial Bank of Commerce agreed Wednesday to pay $125 million to settle U.S. charges of deceptive market timing and late trading.
The fine, consisting of $100 as restitution and the rest in penalties, stems from SEC accusations against various CIBC units.
The settlement arises from a broad investigation by the SEC and New York state into abusive trading practices and conflicts of interest among mutual funds, the Wall Street Journal said.
CIBC is accused of arranging financing for hedge-fund clients, who engaged in "abusive" trading of mutual funds, including late trading, according to people familiar with the matter. Such trading is illegal because it allows investors to get a mutual fund's price -- set as of 4 p.m. Eastern time -- for orders submitted as much as several hours later.
