National Financial Services LLC (NFS) has agreed to pay a fine of $175,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From January 2020 to July 2024, NFS misreported certain quantitative information or failed to disclose certain material aspects of the firm’s relationships with its execution venues in its Rule 606(a) quarterly reports under Regulation NMS of the Securities Exchange Act of 1934.

Accordingly, NFS violated Rule 606(a) of Regulation NMS and FINRA Rule 2010.

From September 2022 to April 2023, NFS erroneously excluded immediate-or-cancel (IOC) mid-point peg orders in its Rule 605 monthly reports under Regulation NMS. Accordingly, NFS violated Rule 605 of Regulation NMS and FINRA Rule 2010.

On top of the $175,000 fine, the firm has agreed to a censure.

National Financial Services LLC (NFS) is a broker-dealer firm headquartered in Boston, Massachusetts, and has been a FINRA member firm since January 1983. NFS is a carrying broker-dealer that, among other things, provides clearing and custodial services. The firm has approximately 70 branches and approximately 2,000 registered representatives.