BD Fined $2 Million for Trade Reporting Violations
FINRA fined a large broker-dealer $2 Million for trade reporting violations. FINRA cited the BD for a large number of erroneously reported non-bona fide transactions at the opening of a triple witching trading session, significant OATS and TRACE reporting omissions, and failures to monitor operational controls for its trading systems.
OUR TAKE: FINRA has been stepping up its emphasis on price reporting systems to enhance transparency. This large fine signals FINRA’s seriousness.