--- title: SEC Charges S&P Dow Jones Indices description: S&P DJI published and disseminated stale index values during a period of unprecedented volatility. image: https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/volatility-2-0-in-focus-May-12-2022-09-20-09-52-AM.jpg --- ![websites-group](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/new-MMG-01.svg) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-new-marketsmedia-logo.svg)](https://www.marketsmedia.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-traders-redlogo.svg)](https://www.tradersmagazine.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-bestexe-logo.svg)](https://www.bestexecution.net/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-fidesk-logo.svg)](https://www.fixglobal.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-fixglobal-new-logo.svg)](https://www.fixglobal.com/) - [*Facebook*](https://www.facebook.com/MarketsMedia/) - [*Twitter*](https://twitter.com/marketsmedia) - [*Linkedin*](https://www.linkedin.com/company/markets-media-llc) - [Newsletter](https://articles.marketsmedia.com/sec-charges-sp-dow-jones-indices#popup-newsletter) #### Want the latest news on securities markets -- FREE? 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The SEC’s order finds that, because the Index was the primary input for the calculation of the XIV ETN’s indicative value, the ETN’s indicative values published to the market during the same intervals were similarly static and, as a result, the indicative values being reported in real-time were higher than they would have been if the Auto Hold had not been triggered.  While the Auto Hold was in place freezing the values being published to the market, XIV’s indicative value breached a key metric, which provided XIV’s issuer the right to accelerate all outstanding notes.  According to the SEC’s order, XIV therefore had an economic value that was substantially lower than what had been publicly reported and was at risk of being accelerated by its issuer. “Index providers like S&P DJI play a crucial role in the financial markets,” said Daniel Michael, Chief of the SEC Enforcement Division’s Complex Financial Instruments Unit.  “When index providers license their indices for the issuance of securities, as S&P DJI did here, they must ensure that the disclosure of critical features of their products as well as the publication of real-time values are accurate.” The SEC’s order charges S&P DJI with violating Section 17(a)(3) of the Securities Act.  Without admitting or denying the SEC’s findings, S&P DJI agreed to a cease-and-desist order and to pay a $9 million penalty. The SEC’s investigation was conducted by Joshua I. Brodsky, Armita S. Cohen, and Daniel L. Koster of the Complex Financial Instruments Unit and Matthew O. Koop of the Market Abuse Unit with assistance from Thomas Bednar and David Misler of the Enforcement Division’s Trial Unit.  The investigation was supervised by Jeffrey P. Weiss. Source: SEC [Share](https://www.facebook.com/share.php?u=https://articles.marketsmedia.com/sec-charges-sp-dow-jones-indices) [Tweet](https://twitter.com/intent/tweet?text=US+ETFs+Have+Record+Net+Inflows&url=https://articles.marketsmedia.com/sec-charges-sp-dow-jones-indices) [Share](https://www.linkedin.com/cws/share?url=https://articles.marketsmedia.com/sec-charges-sp-dow-jones-indices) ![email](https://articles.marketsmedia.com/hubfs/Markets%20Media/email.svg) ### NEWSLETTER SIGN UP And receive exclusive articles on securities markets ### Related articles 1. 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