Broker-Dealer Settles SEC Charges for Recordkeeping and Reporting Violations

A broker-dealer settled SEC charges for violating recordkeeping and reporting requirements relating to electronic bluebook ("EBS") submissions.

According to the SEC, the broker-dealer made 14,868 EBS submissions over nearly a five-year period – comprised of trade data for 34,884,409 transactions – all of which contained certain deficiencies. The SEC Order noted that the deficient submissions were the result of undetected coding errors, software issues, and human error.

To settle the charges, the broker-dealer agreed to: (i) cease and desist from further violating SEC rules; (ii) a censure; and (iii) pay a civil money penalty of $3.2 million. The SEC's Order also recognized the company's remedial efforts to address the cause of its deficient submissions.