A clearing firm settled NYSE American charges for failing to accurately report options positions to the Large Options Position Reporting ("LOPR") system.
In a Letter of Acceptance, Waiver and Consent, NYSE American alleged that between December 2014 and September 2018, the firm omitted from its LOPR reports short contract quantities in firm accounts that held short straddles (i.e., short puts and short calls that have the same strike price and expiration). As a result of the firm's LOPR reporting failures, NYSE American determined that the firm violated NYSE American Rule 906 ("Reporting of Options Positions").
To settle the charges, the firm agreed to a censure and a $75,000 fine.
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