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ARTICLE · 08 DECEMBER 2020

Firm Settles FINRA Charges For TRACE Reporting Violations

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A broker-dealer settled FINRA charges of systemic Trade Reporting and Compliance Engine ("TRACE") violations.

United StatesFinance and Banking
Hogan Lovells Cadwalader
Hogan Lovells Cadwalader
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A broker-dealer settled FINRA charges of systemic Trade Reporting and Compliance Engine ("TRACE") violations.

In a Letter of Acceptance, Waiver and Consent, FINRA found that the firm violated FINRA Rule 6730 ("Transaction Reporting") in that:

  • due to manual trade amendments and the firm's traders entering late trades, the firm reported over 2% of its Corporate transactions to TRACE more than 15 minutes after the time of execution, with approximately 1,000 late reports per month;
  • due to coding errors, the firm over-reported Treasury transactions to TRACE that were executed between the firm and its affiliate, where the firm was executing offsetting transactions with customers or other dealers; and

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