HSBC Securities (USA) Inc has agreed to pay a fine of $125,000 as a part of a settlement with Financial Industry Regulatory Authority (FINRA).

From June 2020 through March 2022, the firm violated FINRA Rules 6730(a) and 2010 by failing to timely report to the Trade Reporting and Compliance Engine (TRACE) approximately 5,635 transactions in TRACE-eligible corporate debt securities.

In addition, from June 2020 to the present, the firm violated FINRA Rules 3110 and 2010 by failing to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with TRACE reporting requirements.

On top of the $125,000 fine, HSBC Securities has agreed to a censure and an undertaking that a member of its senior management who is a registered principal of the firm must certify in writing that the firm has remediated the issues and implemented a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with Rule 6730.