Firm Settles FINRA Charges for NMS and OTC Reporting Failures

A firm settled FINRA charges for failing to timely report trades in National Market System ("NMS") securities and over-the-counter ("OTC") securities.

According to the AWC, during periods of high trading, the firm's order management system ("OMS") did not timely report certain trades. FINRA found that, as the firm transitioned to a new OMS and, due to a technological issue related to the transition, the firm failed to report certain transactions in OTC securities within ten seconds of execution as required. FINRA determined the firm did not timely report 1.6 million NMS transactions to the Nasdaq Trade Reporting Facility and the NYSE Trade Reporting Facility. FINRA also found that the firm did not timely report 125,446 OTC transactions to the Over-the-Counter Trade Reporting Facility.

FINRA found that the firm violated FINRA Rules 6380A(a) ("Transaction Reporting"), 6380B(a) ("Transaction Reporting"), 6622(a) ("Transaction Reporting") and 2010 ("Standards of Commercial Honor and Principles of Trade")

To settle the charges, the firm agreed to (i) a censure and (ii) pay a $175,000 fine.