Broker-Dealer Fined for Failing to Report Short Interest Positions

A broker-dealer settled FINRA charges for failing to report short interest positions and related supervisory violations.

According to the AWC, the firm failed to report 18,702 short interest positions totaling 36,452,154 shares. FINRA said the firm mistakenly believed that its "third party back-office vendor" was submitting the required reports. FINRA noted that the failures were not discovered until FINRA made an inquiry in May 2023.

FINRA determined that the firm violated FINRA Rules 2010 ("Standards of Commercial Honor and Principles of Trade"), 3110 ("Supervision") and 4560 ("Short-Interest Reporting")

To settle the charges, the broker agreed to (i) a censure and (ii) a civil monetary penalty of $300,000.