FINRA Fines Wedbush Securities $30,000 for Reporting Failures

The company and the regulator have reached a settlement agreement.

The Financial Industry Regulatory Authority (FINRA) has fined Wedbush Securities, Inc., a provider of securities brokerage services, $30,000 as part of a settlement for alleged reporting failures.

According to a legal document seen by Finance Magnates, FINRA states that between the 1st of January to the 30th of June 2017, Wedbush failed to transmit to the regulator’s Order Audit Trail System (OATS) 237,457 reportable order events (ROEs) on 117 business days and inaccurately transmitted an additional 82,959 ROEs. 

Therefore, the regulator states that the firm has violated FINRA Rules 7450 and 2010. In addition to the $30,000 fine, Wedbush has also agreed to a censure.

In the document, the regulator explains: “FINRA Rule 7450 requires member firms to transmit to OATS, in an electronic format prescribed by FINRA, a report containing each applicable item of order information whenever an order is originated, received, transmitted to another department within the member or to another member, modified, canceled, or executed. 

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“FINRA Rule 7460 provides that a member firm’s failure to comply with Rule 7450 may constitute a violation of FINRA Rule 2010, which requires members to observe high standards of commercial honor and just and equitable principles of trade.” 

Wedbush has agreed to settle the issue, without admitting or denying the findings of the regulator, the document said. The securities brokerage provider has been a FINRA member since 1955.

FINRA fines Virtu Americas

Wedbush Securities has not been the only member to receive a fine from the regulator in recent weeks. As Finance Magnates reported earlier this month, Virtu Americas LLC (formerly KCG Americas LLC) has agreed to pay $250,000 to settle a handful of violations and failures related to order execution.

Wall Street’s industry-funded watchdog found that the firm failed to avoid displaying, locking or crossing quotations in OTC Equity Securities.

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