Nasdaq has posted a notice of disciplinary action against Celadon Financial Group, LLC.

During the period February 28, 2016 through the present (the “Relevant Period”), Celadon Financial Group failed to establish, document, and maintain a system of risk management controls and supervisory procedures reasonably designed to prevent the entry of erroneous orders by rejecting orders that exceed appropriate price or size parameters, or that indicate duplicative orders.

Specifically, the firm’s pre-trade controls to prevent erroneous orders were set at unreasonable levels, and the firm could not produce documentation evidencing the rationale for its chosen levels.

The firm’s supervisory process for identifying corporate actions affecting pre-market trading also was unreasonable from at least November 22, 2023 until November 2024.

The firm allegedly violated Securities Exchange Act Section 15c3, Securities Exchange Act Rules 15c3-5(b) and 15c3-5(c)(1)(ii) (together, the “Market Access Rule”), Nasdaq Rules 3010(a) and 2010A (before December 6, 2019), and General 9, Sections 20(a) and 1(a) (on and after December 6, 2019) during the Relevant Period.

To settle with Nasdaq, Celadon Financial Group consented to the imposition of the following sanctions:

• Censure;
• A fine of $35,000; and
• An undertaking requiring the firm to submit a certification that it remediated the problems.