* Tullett says FINRA finds in favour of its U.S. units
* BGC to pay $33.3 mln in damages
* Tullett to pay $6.1 mln over 2007 acquisition
July 10 British interdealer broker Tullett
Prebon has won $33.3 million in damages from rival BGC
Partners over the alleged poaching of staff from its
United States-based subsidiaries in 2009.
Arbitrators for the Financial Industry Regulatory Authority
(FINRA), Wall Street's industry-funded regulator, found BGC
liable for $13 million and a number of its brokers liable for a
further $20 million, BGC said in a statement on Thursday.
BGC said it plans to cover the damages incurred by its staff
and had already made provisions for the cost.
"The FINRA award will not have a material financial effect
on BGC," the company said.
In its own statement, Tullett Prebon said FINRA had ordered
it to pay $6.1 million in compensation to the former owners of
Chapdelaine Corporate Securities & Co, which it acquired in
2007. The sum relates to outstanding payments associated with
Interdealer brokers match buyers and sellers of currencies,
bonds and swaps in a fiercely competitive market. Several
long-running feuds have in the past erupted between the major
players in the industry, over issues such as poaching and patent
Tullett and BGC are due to meet in a U.S. court in the
autumn over a separate legal action in which Tullett Prebon Plc,
rather than its U.S. subsidiaries, is seeking damages from BGC
for erosion of shareholder value. Tullett has not given a figure
for the amount of damages it is claiming.
The two have already clashed in a London court over
poaching, with Tullett Prebon winning an undisclosed damages
from New York-based BGC. Anthony Verrier, a money market broker
who moved from Tullett to BGC, was banned by Britain's financial
watchdog for his role in the raid.
(Editing by David Holmes)