Credit Suisse Securities (USA) LLC has agreed to pay a fine of $200,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From February 2015 through November 2019, Credit Suisse submitted approximately 15.9 million clearing transactions to the Trade Reporting Facilities (TRFs) without short sale indicators because the firm misunderstood its reporting obligations pursuant to FINRA’s ATS OATS and Trade Reporting guidance. As a result, the firm failed to update its trade reporting systems to include short sale indicators on non-tape, clearing-only regulatory reports.

The firm remediated this issue by updating its trade reporting systems in November 2019.

Thus, Credit Suisse violated FINRA Rules 6182, 6624, and 2010.

Also, from February 2015, through April 2022, Credit Suisse failed to establish and maintain a supervisory system reasonably designed to achieve compliance with its trade reporting obligations for short sales.

During the relevant period, Credit Suisse conducted supervisory reviews designed to detect inaccuracies in its short sale reporting. Those reviews, however, only included the firm’s media-reported trade reports. The firm had no supervisory reviews in place to determine whether it accurately reported its non-tape, clearing-only regulatory reports to the TRFs.

The firm remediated this issue in April 2022.

Thus, Credit Suisse violated FINRA Rules 3110 and 2010.

In addition to the $200,000 fine, Credit Suisse has agreed to a censure.