Broker-Dealer Fined for Market Access Control Failures

A broker-dealer settled FINRA charges for failing to maintain adequate market access risk management controls.

In a Letter of Acceptance, Waiver, and Consent, FINRA stated that the firm failed to establish and maintain (i) reasonably designed controls for credit thresholds and erroneous orders, (ii) a supervisory system for soft block reviews and (iii) a system for annual reviews of market access risk controls and supervisory procedures.

As a result, FINRA concluded that the firm violated SEA Rule 15c3-5 ("Risk management controls for brokers or dealers with market access"), FINRA Rule 3110(a) ("Supervision") and FINRA Rule 2010 ("Standards of Commercial Honor and Principles of Trade").

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

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