A broker-dealer settled FINRA charges for inaccurately reporting to the Trade Reporting and Compliance Engine ("TRACE") the capacity in which it acted in executing reportable transactions. FINRA alleged that the broker-dealer, in violation of FINRA Rule 6730 ("Transaction Reporting") (specifically FINRA Rule 6730(c)(7)), reported 323 customer transactions to TRACE as agent when the broker-dealer actually acted as principal for such transactions. In addition, the broker-dealer was charged with violating SEC Rule 10b-10 ("Confirmation of transactions") after it incorrectly recorded its capacity as "agent" for 206 customer confirmations when it had acted as principal for the trades related to such confirmations.
To settle the charges, the broker-dealer agreed to a (i) censure and (ii) $17,500 fine.
Originally published May 18, 2020.
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