Broker-Dealer Settles FINRA Charges for TRACE Reporting Violations

A broker-dealer settled FINRA charges for failing to timely report transactions to the Trade Reporting and Compliance Engine ("TRACE").

In a Letter of Acceptance, Waiver, and Consent, FINRA stated that the broker-dealer failed to report to TRACE 4,039 transactions in corporate debt securities within 15 minutes of the time of execution. FINRA found that these violations were caused by, among other things, the broker-dealer's manual reporting processes, operational errors, and delays by personnel. FINRA concluded that the broker-dealer violated FINRA Rule 6730(a) ("Transaction Reporting"). FINRA also found that the broker-dealer violated FINRA Rule 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the charges, the broker-dealer agreed to a censure and a $55,000 fine.