Charles Schwab Corp.
said that it has found evidence of market timing and late trading in its funds, the Wall Street Journal reports.
The company also said that it has recieved requests for information from the SEC and Eliot Spitzer's office and is cooperating with those investigations.
In a third quarter filing with the SEC, the company said that it found suspect trades its U.S. Trust Corp. mutual fund unit saying "a small number of parties were permitted to engage in short-term trading". Schwab is currently taking steps to prevent future timing from taking place.
Additionally, the company said it identified a "limited number of instances at Schwab in which fund orders may have been entered or processed after the 4:00 pm.clsoing time in a manner contrary to Schwab policies."
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