Firm Settles FINRA Charges for Market Access Control Failures

A firm settled FINRA charges for failure to apply market access controls and procedures to orders routed through one of its electronic trading systems.

According to the Letter of Acceptance, Waiver and Consent, from February 2014 through September 2019, the firm mischaracterized one of its trading systems as not offering order entry and execution functionality. FINRA concluded that the mischaracterization led to a failure to subject the electronic trading system to the firm's policy on applicable market access controls and procedures.

As a result of the above conduct, FINRA determined that the firm violated SEA Rule 15c3-5 ("Risk management controls for brokers or dealers with market access") sections (b) and (c), and FINRA Rule 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the charges, the firm agreed to (i) a censure, and (ii) a $350,000 fine.