Broker-Dealer Settles Charges for Inaccurate Trade Reports

A firm settled FINRA charges for submitting inaccurate trade reports. FINRA said the firm self-reported that the inaccuracies were the result of coding errors when the firm migrated to a new blue sheet system. 

According to the AWC, the firm submitted approximately 17,000 blue sheets to FINRA that misreported or failed to report information on approximately 4.4 million transactions related to eight different types of transaction information. FINRA found that the inaccurate submissions impacted fields related to, among other things: "the customer's address, including city, state and zip; the execution time for trades allocated to customer accounts; and whether the trades were solicited or unsolicited."

FINRA noted that "all of the logic impacting the transaction fields was remediated."

FINRA found that, during the relevant period, the firm violated FINRA Rules 8211 ("Automated Submission of Trading Data Requested by FINRA"), 8213 ("Automated Submission of Trading Data for Non-Exchange-Listed Securities Requested by FINRA") and 2010 ("Standards of Commercial Honor and Principles of Trade"). 

To settle the charges, the firm agreed to (i) a censure and (ii) pay a $1,100,000 fine.