A broker-dealer settled FINRA charges for reporting inaccuracies and submission failures to the Order Audit Trail System ("OATS") in violation of FINRA Rules 7450 ("Order Data Transmission Requirements") and 2010 ("Standards of Commercial Honor and Principles of Trade").
According to FINRA, the broker-dealer also: (i) provided customers with order confirmations containing erroneous information in violation of SEA Rule 10b-10 ("Confirmation of transactions"); (ii) misused "prior reference price modifier[s]" in its trade reports in violation of FINRA Rule 6622 ("Transaction reporting"); and (iii) included incorrect execution times on customer order tickets resulting in inaccurate books and records in violation of SEA Rule 17a-3 ("Records to be made by certain exchange members, brokers and dealers") as well as FINRA Rule 4511 ("General Requirements").
FINRA added that the broker-dealer failed to establish and implement a supervisory system reasonably designed to ensure compliance with the relevant securities regulations concerning OATS reporting, in violation of FINRA Rule 3110 ("Supervision").
To settle the charges, the broker-dealer agreed to a (i) censure and (ii) $150,000 fine.
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