A broker-dealer agreed to pay $2.75 million to settle SEC charges for failing to submit accurate and complete securities trading information on electronic blue sheets ("EBS").
According to the SEC Order, Convergex Execution Solutions, LLC ("Convergex") submitted a substantial number of EBS that contained missing or inadequate data. Despite being sanctioned by FINRA in March 2012 for the same failures, Convergex allegedly failed to take steps to make sure that the transaction reports were accurate. Convergex's submissions reportedly failed to supply customer names, addresses or taxpayer identification numbers due to undetected coding errors.
In the SEC Order, the SEC recognized that Convergex undertook remedial efforts to improve its information technology. After being notified by the SEC that the EBS submissions were incomplete, Convergex rectified the coding errors that had caused these issues and made corrected EBS submissions to the SEC and FINRA. Additionally, Convergex implemented new controls over its EBS reporting process, and adopted new policies for processing EBS requests and submitting EBS data. Convergex also retained an outside consultant that provided recommendations on EBS control and governance frameworks.
As part of the settlement, Convergex admitted the facts set out in the SEC Order.
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