Conn. AG, TD Ameritrade reach agreement

Bryan Cohen Jul. 10, 2012, 6:23am


HARTFORD, Conn. (Legal Newsline) - Connecticut Attorney General George Jepsen reached an agreement Friday with online retail broker TD Ameritrade as part of a multi-state matter looking into possible antitrust violations in the retail securities brokerage industry.

The multi-state matter is meant to determine if several retail securities brokers and firms engaged in collusive conduct in executing their orders on an exchange. The possible collusion could have hindered competition in the retail brokerage industry. The agreement with TD Ameritrade is the second resolution Jepsen and his partner states have reached in the matter.

"I am committed to ensuring open and competitive markets for all investors, regardless of the size of their portfolio, as well as a level playing field for businesses that provide services to those consumers," Jepsen said. "This investigation is important to achieving those goals."

TD Ameritrade agreed to cooperate in the matter and in any subsequent legal actions. The company agreed to create and implement a policy for antitrust compliance and a training program for company employees. In exchange, Connecticut and the other states in the matter have ceased looking into potential collusion at TD Ameritrade.

Jepsen praised TD Ameritrade for its continued cooperation and its commitment to improving the training for its employees on issues related to competition.

"TD Ameritrade's agreement to cooperate will provide substantial assistance to the ongoing investigation," Jepsen said.

The multi-state matter started after Loyal3 Holdings Inc. and NASDAQ OMX Corporate Solutions discontinued their partnership they previously announced on June 2, 2011. Loyal3 gives investors an online, fee-free platform to purchase fractional shares and securities of publicly traded companies directly from the companies themselves, bypassing the need for traditional retail brokers.

Neither Loyal3 nor Nasdaq are subjects of the multi-state matter.

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