A broker-dealer settled FINRA charges of failure to prevent trade-throughs of protected quotations in national market system ("NMS") stocks. "Trade-throughs" occur when one trading center executes an order at a lower price than the protected quotation price at another trading center.
FINRA alleged that the firm executed orders in NMS stocks internally without also sending intermarket sweep orders to other markets displaying better-priced protected quotations in that stock between October 2014 and March 2015. Accordingly, FINRA determined that the firm did not establish, maintain or enforce sufficient policies and procedures to prevent trade-throughs of NMS stocks.
The firm agreed to a $55,000 fine - $6,000 of which goes to FINRA.
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