FINRA fines BGC Financial for TRACE reporting deficiencies
BGC Financial, L.P. has agreed to pay a fine of $175,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From January 8, 2020, through October 22, 2020, BGC Financial utilized a system for the electronic execution of U.S. Treasury transactions that captured execution times in milliseconds. However, during this period, BGC reported the execution times of over 3.5 million Treasury transactions to Trade Reporting and Compliance Engine (TRACE) in seconds rather than milliseconds, representing 100% of BGC’s reported trades in U.S. Treasury Securities.
Therefore, Respondent violated FINRA Rules 6730 and 2010.
In addition to the fine, the respondent has agreed to a censure.
Let’s recall that, in August 2020, FINRA censured and fined BGC Financial $100,000 for TRACE reporting and related supervisory violations, and imposed an undertaking to address the supervisory deficiencies.