The settlement follows a two-year investigation by the Massachusetts Securities Division into the bankâs trading huddles and whether they provided a trading advantage to priority customers.
Analysts and traders would hold regular âhuddlesâ to discuss stock movements within the markets and stocks. The information was later shared with priority clients to provide advice on short-term investment ideas.
Goldman has subsequently agreed to discontinue this practice, which was described as âdishonest and unethicalâ by the regulator.
A spokesman for the bank said: "We're pleased to have resolved this matter with the Massachusetts Securities Division."
The settlement documents stated that Goldman was found to have âengaged in dishonourable or dishonest conductâ - however, it was noted that nothing in it âshall be construed as a finding or admission of fraudâ.
FINRA is also reported to be close to completing an investigation into Goldmanâs trading huddles practice, according to an unnamed source.
By Jim Ottewill