A broker-dealer agreed to settle FINRA charges for failing to report, and inaccurately reporting, OTC options positions to the Large Options Position Reporting system ("LOPR"), and for related supervisory failures.
According to FINRA's Letter of Acceptance, Waiver and Consent, the reporting breaches arose due to the firm's (i) failure to code certain accounts and derivatives as being subject to LOPR reporting, (ii) failure to identify certain accounts as "acting in concert" for purposes of LOPR reporting, and (iii) filing of LOPR reports with incorrect names, addresses or tax identification numbers due to manual data entry errors. In addition, FINRA charged the firm with related supervisory failures.
The firm agreed to pay $225,000 to settle the charges.
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.
