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Broker-Dealer Settles Charges for TRACE Time of Execution Violations

A broker-dealer settled FINRA charges for failing to report the time of execution in the finest increment of time captured by its system when reporting transactions in Treasury securities to the Trade Reporting and Compliance Engine ("TRACE").

According to FINRA, the broker-dealer reported the execution times of the transactions to TRACE in seconds, even though the system the broker-dealer utilized was capable of capturing the time of execution in milliseconds.

As a result, the broker-dealer violated FINRA Rule 2010 ("Standards of Commercial Honor and Principles of Trade") and Rule 6730 ("Transaction Reporting"). To settle the charges, the broker-dealer agreed to (i) a censure and (ii) a civil monetary penalty of $175,000.

Primary Sources

  1. FINRA AWC: BGC Financial, L.P.

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Tags

Regulated Activities
Trade Reporting
Sub-Activity
TRACE
Regulated Entities
Broker-Dealers
Regulated Products
US Government Securities
Body of Law
Securities Law
Jurisdiction
US - Federal
Organization
FINRA / MSRB / SEC Exchanges / SIPC / Accountants
Sub-Author
FINRA