Secretary of State William F. Galvin has fined Goldman Sachs & Co. $10 million in a settlement related to communications on trades among its staff and certain clients.
Under the agreement, Galvin said the Wall Street giant would discontinue a program that allegedly provided certain clients short-term trading ideas ahead of other clients. The program was called “Asymmetric Service Initiative,’’ and ranked customers in tiers, providing the top tier with calls from senior analysts.
Goldman also agreed to halt the internal meetings among its stock research analysts and traders known as “huddles.’’
Among the clients who did not receive the calls with trading tips, Galvin alleged, were some small Massachusetts-based mutual fund companies and state pension funds.
Goldman Sachs was not immediately available to comment.