A broker-dealer settled FINRA charges for overstating its executed trade volume by inaccurately advertising its executed trade volume through a private subscription-based provider of market data.
According to FINRA, the broker-dealer violated FINRA Rule 5210 ("Publication of Transactions and Quotations") by inaccurately advertising its executed trade volume in at least 4,280 instances (overstating the trade volume by 186,818,546 shares). The inaccuracy was caused by improperly including orders from other firms that used the broker-dealer as a technology vendor, not for execution. FINRA also charged the broker dealer with submitting duplicate trade volume for one symbol and for violating FINRA Rule 3110 ("Supervision") by failing "to establish, maintain, and enforce" a supervisory system and written supervisory procedures designed to prevent such inaccurate advertising of the broker-dealer's executed trade volume.
To settle the charges, the broker-dealer agreed to a (i) censure and (ii) $100,000 fine ($70,000 for violating FINRA Rule 5210, and $30,000 for violating FINRA Rule 3110).
Originally published May 18, 2020.
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.
