Firm Settles FINRA Charges For Trade Reporting Violations

A firm settled FINRA charges for failing to timely report, and for over-reporting, non-tape reports with a special .RX trade report modifier (".RX Transactions").

In a Letter of Acceptance, Waiver and Consent, FINRA determined that the firm failed to timely report .RX Transactions involving National Market System ("NMS") stocks, as defined under Regulation NMS Rule 600(b)(47) ("NMS security"), by the close of the FINRA/Nasdaq Trade Reporting Facility ("FNTRF") and on the date of the trade. FINRA also found that the firm over-reported .RX Transactions to (i) the FNTRF and (ii) the OTC Reporting Facility ("ORF") by the close of the ORF on the date of the trade.

As a result of its findings, FINRA determined that the firm violated FINRA Rules 2010 ("Standards of Commercial Honor and Principles of Trade"), 7230A(g)(2) and 7330(g)(2) ("Reporting Certain Transactions for Purposes of Regulatory Transaction Fee Assessment").