The Securities and Exchange Commission (SEC) today announced settled charges against Jefferies LLC, a registered broker dealer, for failing to provide complete and accurate securities trading information, known as blue sheet data, to the SEC.

Jefferies agreed to pay a $650,000 civil penalty to resolve the SEC’s charges.

According to the SEC’s order, from at least July 2018 through July 2024, in response to requests from the Commission staff, Jefferies made at least 7,700 blue sheet submissions to the SEC that contained inaccurate or missing information, resulting in the misreporting of data for at least 1.2 million transactions.

The SEC’s order finds that these deficiencies were caused by nine types of errors, seven of which were self-reported by Jefferies.

The SEC’s order further finds that Jefferies engaged in voluntary remedial efforts concerning its blue sheet reporting system and control environment, including by retaining a consultant to conduct a comprehensive assessment of its blue sheets systems, and implementing a data validation system and governance and control framework with daily autonomous data validation.

The SEC’s order finds that Jefferies willfully violated the broker-dealer recordkeeping and reporting provisions of Section 17(a)(1) of the Securities Exchange Act of 1934 and Rules 17a-4(j) and 17a-25 thereunder.

Jefferies admitted the findings in the order and agreed to a cease-and-desist order, a censure, and to pay a $650,000 civil penalty.