FINRA Fines TD Ameritrade Clearing and SG Americas Securities for Options Positions Reporting and Supervisory Violations

FINRA announced that it has fined TD Ameritrade Clearing, Inc. and SG Americas Securities, Inc. a total of $1.8 million for failing to report or accurately report certain large options positions and for related supervisory deficiencies.

FINRA found that, from May 2007 to January 2010, TD Ameritrade failed to properly aggregate certain reportable positions as acting-in-concert, which resulted in the firm failing to report approximately 1.4 million positions. Additionally, FINRA found that TD Ameritrade failed to establish and maintain reasonable supervisory procedures and systems to ensure compliance with rules applicable to the accurate reporting of positions.

In a separate case, FIRNA found that SG Americas failed to report OTC options positions, and failed to report or misreported the counterparty for OTC options positions, its customers' OTC options positions, and OTC index options positions. In addition, FINRA found SG Americas did not have reasonable supervisory procedures.

See: FINRA News Release.