Firm Settles FINRA Charges for TRACE Reporting Violations

A firm settled FINRA charges for untimely reporting of transactions, the failure to use required modifiers and related supervisory failings. 

According to the AWC, the firm failed to: (i) timely report approximately 5,200 transactions to TRACE during the relevant period; (ii) include the required "B" modifier (which identifies transactions tied to certain futures contracts) on approximately 57,000 TRACE reports; and (iii) maintain an adequate supervisory system. On the latter, FINRA found that the firm relied on an inadequate supervisory system that failed to identify or correct deficiencies in its TRACE reporting.

FINRA charged the firm with violations of FINRA Rules 2010 ("Standards of Commercial Honor and Principles of Trade"), 3110 ("Supervision") and 6730 ("Transaction Reporting").

To settle the charges, the firm agreed to (i) a censure and (ii) pay a $250,000 fine.