Broker-Dealer Fined for Records Violations on Options Orders

A broker-dealer settled NYSE American charges for failing to maintain accurate records for customers' options orders.

In a Letter of Acceptance, Waiver and Consent, NYSE American found that the broker-dealer (i) did not accurately record the time the manual options orders were received, (ii) did not record that certain orders were market orders, and (iii) only recorded the final terms of an executed trade. NYSE American found that the failures were caused by insufficient supervisory controls pertaining to manual order recordkeeping.

NYSE American determined that the broker-dealer violated Exchange Act Section 17(a) ("Records and reports"), Exchange Act Rule 17a-3(a)(6)(i) ("Records to be made by certain exchange members, brokers and dealers"), NYSE American Rule 320(e) ("Offices—Approval, Supervision and Control"), Rule 324 ("Books and Records") and Rule 956NY ("Record of Orders"). To settle the charges, the broker-dealer agreed to (i) a censure and (ii) a civil monetary penalty of $200,000.