A broker-dealer settled NYSE American LLC ("NYSE American") charges for (i) failing to keep accurate records of the firm's customer orders that were routed to the NYSE American Options floor, and (ii) related supervisory violations.

In a Letter of Acceptance, Waiver and Consent, NYSE American found that the broker-dealer did not maintain accurate order memoranda that included the price and transmission times. NYSE American determined that the broker-dealer's reported electronic transmission times were often later than the times entered by NYSE American floor brokers. NYSE American also found that the broker-dealer "routinely" recorded the prices of manually received institutional customer options orders inaccurately. The exchange found that the broker-dealer often recorded such options orders as having a "MKT" price when, in fact, these orders had a specific price agreed upon by the broker-dealer and the institutional customer.

In addition, NYSE American concluded that the firm failed to maintain a reasonably designed supervisory system that would ensure compliance with its books and records obligations.

As a result of its findings, NYSE American determined that the broker-dealer violated Section 17(a) ("Rules and Regulations") of the Exchange Act, SEA Rule 17a-3 ("Records to Be Made by Certain Exchange Members, Brokers and Dealers") and NYSE American Rules 956NY ("Record of Orders") and 320 ("Offices - Approval, Supervision and Control").

To settle the charges, the broker-dealer agreed to (i) a censure, (ii) a $250,000 fine and (iii) an undertaking to address its books and records compliance deficiencies.

Primary Sources

  1. NYSE American LLC AWC: RBC Capital Markets, LLC

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