A broker-dealer agreed to pay $875,000 to settle FINRA charges that it violated the Custody Rule (Exchange Act Rule 15c3-3) and several related FINRA rules.
According to the Letter of Acceptance, Waiver and Consent, Nomura Securities International, Inc. ("Nomura") failed to maintain an adequate reserve account for its Proprietary Accounts of Broker-Dealers ("PAB") for nearly one year. FINRA determined that Nomura utilized an incorrect report from the Options Clearing Corporation to calculate PAB reserve requirements, resulting in consistent reserve shortages. The shortages were also attributed to Nomura improperly (i) commingling certain trading activity and (ii) coding certain accounts as PAB accounts. FINRA further found that Nomura maintained inadequate supervisory systems and violated books and records provisions.
Nomura reached the settlement agreement without admitting or denying FINRA's allegations.
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