A former broker-dealer agreed to settle FINRA charges for failing to "establish, maintain, and enforce procedures reasonably designed to achieve compliance . . . with rules relating to options origin codes."
According to the Letter of Acceptance, Waiver and Consent, a broker-dealer, acquired by E*TRADE Futures LLC ("E*TRADE") in 2016, routed to other firms various options orders that were marked "Customer" instead of "Professional Customer." FINRA noted that the inaccurate codes potentially could affect the priority of order execution on certain exchanges and FINRA's ability to oversee and detect potential violations.
Without admitting or denying the findings, E*TRADE agreed to a censure and to pay a $75,000 monetary fine.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
