Firm Settles NYSE Arca Charges for Recordkeeping Failures

A broker-dealer settled NYSE Arca charges for recordkeeping and supervisory compliance failures.

In a Letter of Acceptance, Wavier and Consent, NYSE Arca alleged that - with respect to options trading - the firm failed to:

• keep complete transaction records;

• create a memorandum for each brokerage order, including unexecuted orders, that includes the time of order entry;

• maintain accurate records for orders manually handled by the firm's trading desks; and

• implement a system to supervise the activities of its associated persons and the operations of its business.

As a result, NYSE Arca alleged that the firm violated SEA Section 17(a) ("Records and reports") and Rule 17a-3(a)(6)(i) ("Records to be made by certain exchange members, brokers and dealers") thereunder, and NYSE Arca Rules 6.68-O and 11.18.

To settle the charges, the firm agreed to (i) a censure and (ii) a fine of $80,750 (which was paid simultaneously with other charges for a total fine of $221,500).