Firm Settles FINRA Charges for TRACE Reporting Violations

A firm settled FINRA charges for failing to timely report transactions in TRACE-eligible corporate debt securities.

According to the AWC, the firm failed to timely report approximately 1,000 transactions in TRACE-eligible corporate debt securities during the relevant period. FINRA found that these late reports resulted from manual entry errors and delays. FINRA stated that it sent two written warnings for similar TRACE reporting deficiencies to the firm, but the firm did not correct its reporting practices. FINRA said the untimely reports constituted 6.3 percent of the firm's total TRACE-eligible corporate debt transactions during the relevant period.

As a result, FINRA determined that the firm's failures deprived investors and market participants of critical, timely information necessary for making trading and valuation decisions.

FINRA found that the firm violated FINRA Rules 2010 ("Standards of Commercial Honor and Principles of Trade") and 6730 ("Transaction Reporting").

To settle the charges, the firm agreed to (i) a censure and (ii) pay a civil monetary penalty of $60,000.