FINRA Penalizes Broker-Dealer for Certain Fixed Income Transaction Violations

A broker-dealer settled FINRA charges for executing non-bona-fide fixed income transactions and related supervisory failures.

According to FINRA, the firm's credit trading desk executed 163 non-bona fide fixed income transactions in violation of FINRA Rule 5210 ("Publication of Transactions and Quotations"). FINRA also found that the broker-dealer failed to implement a supervisory system and written supervisory procedures to comply with FINRA Rule 5210, in violation of NASD Rule 3010(a)-(b) and FINRA Rule 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the charges, the broker-dealer agreed to (i) a censure, (ii) a $30,000 fine and (iii) compliance with the undertaking outlined in the FINRA Acceptance, Waiver and Consent letter to improve its supervisory system and written supervisory procedures.