A broker-dealer agreed to pay $450,000 to settle FINRA charges for failing to establish and maintain an adequate supervisory system to comply with Order Audit Trail System ("OATS") reporting obligations.
According to the Letter of Acceptance, Waiver and Consent, FINRA alleged that Electronic Transaction Clearing, Inc. ("Electronic") failed to sufficiently enforce its written supervisory procedures regarding OATS reporting, which required that identified exceptions be addressed by the firm's Chief Compliance Officer. In addition, FINRA claimed that Electronic neglected to accurately submit to OATS more than 3.1 billion Route Reports concerning a single customer. FINRA claimed that due to the lack of supervision, Electronic's OATS violations went undetected until the issues were recognized by FINRA staff.
Electronic neither admitted to nor denied the findings.
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