FINRA Fines BGC Financial With $100,000

The US Financial Industry Regulatory Authority (FINRA) has imposed a fine of $100,000 on BGC Financial as part of a settlement of alleged rule violations.

17 August 2020 | AtoZ Markets – BGC Financial is a brokerage firm. It provides trading services of stocks, bonds, mutual funds, and certain other investment products. However, the firm became a member of FINRA on July 25, 1987. It employs approximately 300 registered agents in 15 US branches.

FINRA Fines BGC Financial for Reporting, Recordkeeping, and Supervision Violations

FINRA announced that it fined BGC Financial for $100,000 for regulatory violations that lasted for almost two years. However, FINRA provides regulatory services for the US equity and options market. The regulator alleged that BGC Financial conducted TRACE reporting, recordkeeping, and supervisory violations from November 2, 2015, through September 27, 2017. Out of the total fine, $80,000 is for TRACE reporting and recordkeeping violations, and $20,000 is for supervision violations. FINRA also stated:

“BGC Financial failed to detect its reporting of inaccurate execution times. Additionally, the firm did not have a procedure to monitor whether it was reporting information to TRACE that it was not required to report.”

From July 1, 2016, to September 30, 2017, BGC Financial reported  506 transactions with inaccurate execution times to TRACE. Between November 2015, and September 2017, the brokerage firm also reported 1,304 non-reporting eligible securities to TRACE. Due to a manual error, it recorded incorrect execution times of 77 orders from July 2016 to September 2017.

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Between November 2015, and September 2017, the firm also failed to have a supervisory system that includes WSPs (written supervisory procedure).  In this settlement, BGC Financial did not accept or deny the accusations and agreed to the entry of FINRA’s findings.

Last month, FINRA fined Virtu Americas LLC $175,000 for orders execution violation. Virtu executed 13,136 customer orders received from two outside broker-dealer clients on regular trading hours, which had violated the regulations.

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