Broker-Dealer Fined for Option Positions Reporting Failures

A broker-dealer settled FINRA charges for failing to make accurate reports of OTC options to the Large Options Positions Reporting ("LOPR") system.

In a Letter of Acceptance, Waiver and Consent, FINRA stated that the broker-dealer failed to file accurate reports of OTC options positions as a result of a failure to identify accounts that were under common control or acting in concert. In addition, FINRA claimed that the broker-dealer lacked an adequate supervisory system to comply with LOPR requirements. As a result, FINRA concluded that the broker-dealer violated FINRA Rules 2360(b)(5) ("Options"), 3110 ("Supervision") and 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the charges, the broker-dealer agreed to a (i) censure and (ii) $425,000 fine.