FINRA Fines Broker-Dealer for Failing to Report Nearly 900,000 Trades

FINRA fined a broker-dealer $125,000, issued a censure, and required payment of all back-owed regulatory transaction fees after the firm failed to report nearly 900,000 trades over several years.

According to the AWC, the firm failed to report nearly 900,000 principal-capacity trades to FINRA trade reporting facilities during the relevant period. FINRA found that the firm failed to report 837,805 fractional share transactions arising from its dividend reinvestment program and failed to report approximately 46,000 error correction trades. FINRA also found that the broker-dealer omitted the required contra-side executing broker-dealer identification from 468,005 fractional share trade reports. FINRA found that the firm lacked written supervisory procedures for error correction trade reporting and for fractional share trade reporting.

FINRA determined the broker-dealer violated: FINRA Rule 6380A(b) ("Transaction Reporting") and FINRA Rule 6622(b) ("Transaction Reporting"); FINRA Rule 7230A(d) ("Trade Report Input") and FINRA Rule 7330(d) ("Trade Reporting Input"); FINRA Rule 3110 ("Supervision") and FINRA Rule 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the matter, the firm consented to a censure, a $125,000 fine, and payment of all back-owed regulatory transaction fees.