Firm Settles Charges for Late TRACE Reporting

A firm settled FINRA charges for failing to correctly and timely report trade information on corporate debt securities. 

According to the AWC, the firm failed to report to the Trade Reporting and Compliance Engine ("TRACE") debt transactions within the required 15-minute timeframe. FINRA found that the delays were attributed to manual reporting processes, including late data entry by employees and inconsistent handling of foreign debt securities. FINRA also determined that the firm's supervisory systems lacked sufficient procedures, allowing repeat late-reporting issues to continue without adequate intervention.

FINRA said the firm violated FINRA Rules 6730 ("Transaction Reporting"), 3110 ("Supervision") and 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the charges, the firm agreed to (i) a censure, (ii) pay a $125,000 fine and (iii) implement remedial measures.