By Marietta Cauchi
Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- U.K. interdealer broker Icap PLC (IAP.LN) Friday said that its subsidiary Icap Securities USA had received a "Wells" notice from the U.S. Securities and Exchange Commission relating to possible violations of the federal securities laws.
The notice relates to an existing SEC investigation into the market in certain fixed-income securities that has been ongoing since 2005.
A Wells notice doesn't mean for certain that the SEC will initiate an enforcement proceeding. It does give the recipient an opportunity to demonstrate why the SEC shouldn't. The commission only approves about half of the recommendations for action made by its staff, according to experts.
"The company has discussed these matters with the SEC, has substantial disagreements with the SEC regarding how they should properly be viewed, and will vigorously put forth its position if and when any such charges are brought," Icap said.
A spokesman for Icap declined to comment further on the notice.
In its annual report for the year ended March 31, 2009, Icap said the SEC issued a formal order of investigation to Icap Securities USA, a wholly owned subsidiary of the company, and other interdealer brokers in government and other fixed income securities. The company also said that the SEC has issued several requests for information relating to Icap Securities USA voice mortgage-backed securities desk.
Company Web site: www.icap.com
-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com
(Patricia Kowsmann contributed to this article.)