A broker-dealer settled FINRA charges for failing to immediately display customer limit orders and for related supervisory violations.
In a Letter of Acceptance, Waiver, and Consent, FINRA found that the broker-dealer reviewed some of its order flow manually, rather than through automated systems, resulting in delays. As a result of these delays, the broker-dealer did not "fully and immediately display, route, execute, or cancel" 77% of the sampled customer limit orders, and thus violated FINRA Rules 6460 ("Display of Customer Limit Orders") and 2010 ("Standards of Commercial Honor and Principles of Trade").
Additionally, FINRA determined that the broker-dealer violated FINRA Rules 3110 ("Supervision") and 2010 (in connection with violation of FINRA Rule 6460) by failing to (i) capture cancel/replace orders in its exception reports; and (ii) provide supervisors with guidance on how to conduct FINRA Rule 6460 reviews.
To settle the charges, the broker-dealer agreed to (i) a censure and (ii) a $60,000 fine.
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