BOK Financial Securities, Inc. has agreed to pay a fine of $110,000 as a part of a settlement with FINRA.

From December 2016 to August 2023, due to its traders’ failures to manually enter the correct field in the firm’s TRACE reporting system, BOK Financial failed to include the NR Indicator in TRACE reports for approximately 24,200 transactions in TRACE-eligible securities that did not include a mark-up, mark-down, or commission.

For example, BOK Financial failed to include the NR Indicator in approximately 20,700 reportable transactions in Securitized Products during the relevant time period, which represented approximately 71% of the firm’s reportable transactions in Securitized Products.

In September 2023, following FINRA’s inquiry, the firm automated the inclusion of the NR Indicator in its TRACE reporting system whenever a commission, mark-up, or mark-down was not assessed.

By failing to select the NR Indicator on approximately 24,200 reports of transactions in TRACE-eligible securities, BOK Financial violated FINRA Rules 6730(d) and 2010.

From December 2016 to November 2024, BOK Financial failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), that was reasonably designed to achieve compliance with FINRA Rule 6730(d). While the firm’s WSPs provided for supervisory reviews of its TRACE reporting, none of the reviews related to the accurate reporting of the NR Indicator. Additionally, the firm did not perform any reviews to determine whether its traders accurately reported the NR Indicator, even though manual entry carried the risk of human error.

In September 2023, the firm implemented a daily and a quarterly review sampling its TRACE reports to ensure that it was accurately appending the NR Indicator and revised its WSPs to reflect those reviews in November 2024.

By failing to establish, maintain, and enforce a supervisory system, including WSPs, reasonably designed to achieve compliance with FINRA Rule 6730(d), BOK Financial violated FINRA Rules 3110 and 2010.

On top of the $110,000 fine, the firm has agreed to a censure.

BOK Financial has been a FINRA member since March 1987. The firm is headquartered in Tulsa, Oklahoma, and employs approximately 330 registered persons operating out of approximately 130 branch locations.