Broker-Dealer Settles FINRA Charges for Failing to Repair Rejected OATS Submissions

A broker-dealer settled FINRA charges for failing to repair and resubmit rejected Reportable Order Events ("ROEs") to the Order Audit Trail System ("OATS").

In a Letter of Acceptance, Waiver, and Consent, FINRA found that the broker-dealer, in addition to not recognizing 8,257 rejected, repairable ROEs, failed to timely submit (i.e., within five OATS business days) 6,132 repaired ROEs.

As a result, FINRA determined that the broker-dealer violated FINRA Rules 7450 ("Order Data Transmission Requirements") and 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the charges, the broker-dealer agreed to (i) a censure and (ii) a $25,000 fine.