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

From August 2012 through September 2020, Credit Suisse failed to establish and maintain a supervisory system and procedures reasonably designed to achieve compliance with federal securities laws and FINRA rules prohibiting various forms of manipulative and insider trading.

The firm’s supervisory failures caused hundreds of millions of trade, order, and position records to be omitted from the firm’s surveillance systems. During this period, the firm did not detect numerous instances of potentially violative trading, such as potential insider trading and potential manipulative activity occurring at or near the close of trading.

As a result, the firm violated NASD Rules 3010(a) and (b), and FINRA Rules 3110(a) and (b) and 2010.

For these violations, the firm was censured and fined $7,125,000, of which $445,312.50 must be paid to FINRA.