Massachusetts regulators reportedly subpoenaed
and other fund companies seeking the trading records of international fund managers.
The subpoenas, reported in Wednesday's
Wall Street Journal
, expand concerns about fund managers making improper trades within their own international funds. International funds have been fertile territory for abusive trading because investors can easily take advantage of stale fund prices because of time-zone differences in when markets open and close.
Fidelity, a Boston-based shop and the largest fund company in the U.S., declined to discuss the matter with the
, according to the report. Other fund firms were not mentioned. Massachusetts Secretary of the Commonwealth William Galvin, the state's top securities cop, told the
the subpoenas are aimed at gathering further information in light of a "torrent" of new information about trading activities. Galvin reportedly said the subpoenas may not lead to regulatory action.
Galvin has aggressively pursued questionable practices among the fund firms based in his state -- including
, which was charged with civil securities fraud over the trading activity of two of its overseas fund managers.