September 23, 2020 | AtoZ Markets – The United States Securities and Exchange Commission (SEC) has announced Wednesday that Credit Suisse Securities (USA) LLC has agreed to settle charges for providing the SEC incomplete and inaccurate securities trading information related to fixed-income transactions for almost four years.
Why SEC require accurate securities trading information?
The regulator explains that the law requires broker-dealers to provide securities trading information – known as “electronic blue sheets". The SEC uses this data to carry out its enforcement and regulatory obligations, including investigations of insider trading and other fraudulent activity.
According to the SEC’s order, Credit Suisse’s EBS submissions regarding fixed-income securities failed to include certain execution level information, such as order execution times, for approximately 2,460 transactions. Credit Suisse did not have reasonable pre-submission controls to validate that the information in its fixed-income submissions was complete and accurate.
According to the order, the Delaware limited liability company has engaged in remedial efforts to address the causes for its deficient submissions, including the retention of an outside consultant and the adoption of new policies and procedures for processing blue sheet requests.
SEC fines Credit Suisse $600,000 for willfully violating the broker-dealer books
The SEC concluded that Credit Suisse willfully violated the broker-dealer books and records and reporting provisions of Section 17(a)(1) of the Securities Exchange Act of 1934 and Rules 17a-4(j) and 17a-25 thereunder.
The firm admitted the findings in the SEC’s cease-and-desist order, agreed to be censured, and to pay a $600,000 civil penalty. It is worthy of note that Credit Suisse consented to SEC's cease and desist order, censure, and a fine of $4,250,000 for similar conduct in 2015.
Read also: FINRA Fines Credit Suisse Securities $6.5m
As AtoZ Markets reported, Swiss financial regulator FINMA announced that it began enforcement proceedings against Credit Suisse over two bank executives’ surveillance.
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