US – State Street Corp. says it has received a subpoena from the Securities and Exchange Commission seeking information on market timing and late trading.

The Boston-based bank said in a filing that it and some of its subsidiaries received subpoenas from the regulator on March 5.

This was in addition to earlier requests for information from the SEC and the Department of Labor in an industry-wide probe into mutual funds which began last year. “State Street continues to respond to the SEC and the requests received from the DOL,” State Street said.

“We are committed to the highest standards of regulatory practice and compliance,” said spokeswoman Hannah Grove. She was unable to say which subsidiaries were involved or what additional information had been requested. The SEC declined to comment.

“This wrongdoing represented a fundamental betrayal of American investors, and the SEC is working to both punish the malefactors and to put new measures in place to help prevent this behavior from being repeated,” SEC chairman William Donaldson said last week.

The SEC has proposed a ‘hard’ 4pm close for mutual fund share trading, in order to prevent funds, brokerage firms, and other intermediaries from placing or confirming orders after the markets have closed. It has ruled that funds and advisers keep comprehensive compliance policies.

The agency has also called for independent chairmen of mutual funds and comprehensive codes of ethics.

The fallout from the affair has lead to top executives leaving firms such as Putnam Investments and Janus Capital. And Allianz Dresdner’s PIMCO arm has recently been drawn into the fray.

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