The Securities and Exchange Commission fined Merrill Lynch $12.5 million for not preventing erroneous orders that caused mini flash crashes-stock prices plummeted and then suddenly recovered within seconds-in Google, Anadarko Petroleum Corp, and Qualys in 2013. Anadarko Petroleum Corporation and Qualys Inc. dropped more than 99% and Google dropped more than 3% in less than a second. An SEC investigation found more than 15 market disruptions allegedly caused by Merrill Lynch between late 2012 to mid-2014. Merrill Lynch also allegedly violated the Market Access Rule because controls that are supposed to prevent erroneous trading orders were set at levels so high they were ineffective. Merrill Lynch, a unit of Bank of America , did not admit or deny the findings but, in addition to paying the penalty, was also censured.
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