TD Securities to Pay Over $20M for U.S. Treasuries Market Manipulation

The firm entered a deferred prosecution agreement to resolve criminal and civil charges related to fraudulent trading practices.

TD Securities will pay $15.5 million in penalties, forfeiture, and victim compensation as part of the agreement with the U.S. Department of Justice.
The scheme involved hundreds of spoof orders in the secondary market for U.S. Treasuries, creating false supply and demand.
Jeyakumar Nadarajah, the former head of TD Securities' U.S. Treasuries trading desk, has been indicted and is awaiting trial.
The Financial Industry Regulatory Authority and the SEC have also settled related proceedings with TD Securities, resulting in additional fines totaling $13 million.
TD Securities has agreed to enhance its compliance program and cooperate with ongoing and future investigations.