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Broker-Dealer Settles Charges for Violating Regulation NMS

A broker-dealer agreed to pay $56,000 to settle charges brought by FINRA and several securities exchanges regarding the firm's improper entry of Intermarket Sweep Orders ("ISOs") and related supervisory requirements under Regulation NMS.

FINRA's Department of Market Regulation conducted an investigation of Morgan Stanley & Co. LLC ("MSCO") on behalf of FINRA and several other exchanges. According to FINRA, due to several systems failures, MSCO failed to ensure that the ISOs it had routed met the requirements of Regulation NMS Rule 600 (b)(30) due to several systems issues.

MSCO neither admitted nor denied the charges.

Primary Sources

  1. FINRA Letter of Acceptance, Waiver and Consent: Morgan Stanley & Co. LLC
  2. Investor Exchange Notice of Acceptance of Letter of Acceptance, Waiver and Consent: Morgan Stanley & Co. LLC
  3. NYSE Arca Disciplinary Action: Morgan Stanley & Co. LLC
  4. NYSE Letter of Acceptance, Waiver and Consent: Morgan Stanley & Co. LLC

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Tags

Regulated Activities
Technology (not Cyber) Trading
Sub-Activity
Regulation NMS
Regulated Entities
Broker-Dealers
Body of Law
Securities Law
Jurisdiction
US - Federal
Organization
FINRA / MSRB / SEC Exchanges / SIPC / Accountants
Sub-Author
FINRA