A broker-dealer settled FINRA charges for executing non-bona-fide fixed income transactions and related supervisory failures.
According to FINRA, the firm's credit trading desk executed 163 non-bona fide fixed income transactions in violation of FINRA Rule 5210 ("Publication of Transactions and Quotations"). FINRA also found that the broker-dealer failed to implement a supervisory system and written supervisory procedures to comply with FINRA Rule 5210, in violation of NASD Rule 3010(a)-(b) and FINRA Rule 2010 ("Standards of Commercial Honor and Principles of Trade").
To settle the charges, the broker-dealer agreed to (i) a censure, (ii) a $30,000 fine and (iii) compliance with the undertaking outlined in the FINRA Acceptance, Waiver and Consent letter to improve its supervisory system and written supervisory procedures.
Originally published May 26, 2020.
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