Broker-Dealer Settles FINRA Charges for TRACE Reporting Failures

A broker-dealer settled FINRA charges for Trade Reporting and Compliance Engine ("TRACE") reporting failures.

According to FINRA, the broker-dealer failed to timely report 1,068 fixed income transactions - 609 of which were large block transactions. FINRA found that the untimely reports were caused by (i) manual errors made by staff at the broker-dealer and untimely corrections made to TRACE reports, (ii) improper implementation of Committee on Uniform Securities Identification Procedures numbers in the reporting system, and (iii) a coding error in the firm's reporting system. FINRA noted that while the broker-dealer corrected the TRACE trade reports, it failed to do so within the appropriate timeframe.

To settle the charges, the broker-dealer agreed to (i) a censure and (ii) a $300,000 fine.