Firm Fined for Improperly Booking Trades

A broker-dealer and its chief compliance officer settled charges with NYSE American LLC for improperly booking trades and for allowing an employee to send text messages that were not retained by the firm.

In a Letter of Acceptance, Waiver and Consent, the NYSE stated that the broker-dealer improperly booked options trades to an error account. The NYSE stated that the broker-dealer also failed to retain business communications that were made via personal devices and to implement related supervisory procedures to ensure regulatory compliance.

As a result, the NYSE found that the broker-dealer violated Exchange Act Section 17(a) ("National system for clearance and settlement of securities transactions"), Rule 17a-4(b)(4) ("Records to be Preserved by Certain Exchange Members, Brokers and Dealers") thereunder and NYSE American Rules 324 ("Books and Records") and 320(e) ("Supervision").

To settle the charges, the broker-dealer agreed to a censure and a fine of $225,000. The chief compliance officer agreed to a censure and fine of $15,000.