- within Intellectual Property, International Law, Litigation and Mediation & Arbitration topic(s)
A broker-dealer settled FINRA charges for falsely advertising overstated trading volumes in certain securities through a subscription-based provider of market data.
According to FINRA, the broker-dealer violated FINRA Rule Rule 5210 ("Publication of Transactions and Quotations") and Rule 2010 ("Standards of Commercial Honor and Principles of Trade") by overstating its securities trading volume by including internal booking entries as actual executed trades and publishing the overstated trading volume through Bloomberg L.P., a provider of market data. Additionally, FINRA found that the broker-dealer violated FINRA Rules 3110 ("Supervision") and 2010 after two of its trading desks failed to implement supervisory systems and written supervisory procedures to comply with the requirements of FINRA Rule 5210.
To settle the charges, the broker-dealer agreed to a (i) censure and (ii) $150,000 fine ($100,000 for violations of FINRA Rules 5210 and 2010, and the remaining $50,000 for violations of FINRA Rules 3110 and 2010).
Originally published June 02, 2020
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