Avatar Securities, LLC has agreed to pay a fine of $100,000 as a part of a settlement with Nasdaq Phlx LLC.

From at least March 2020 through October 2021, Avatar failed to reasonably supervise a trader’s activity despite determining that the trader warranted heightened supervision based on their disciplinary history.

Additionally, from at least March 2020 through July 2026, Avatar’s supervisory system was not reasonably designed to prevent or detect potential spoofing, layering, or disruptive quoting and trading activity under Phlx Rule General 9, Section 53(a).

As a result, Avatar violated Phlx Rule General 9, Sections 20(h) and 1(c) and PSX Rule 3503.

The firm has agreed to a censure in addition to the $100,000 fine.

Avatar Securities has been a Phlx member since August 2014 and a FINRA member since February 2024. Avatar is a proprietary trading firm headquartered in New York, New York. Avatar maintains two branches and employs approximately 80 registered representatives. The firm has no relevant disciplinary history.