FINRA fines Odeon Capital for reporting deficiencies
Odeon Capital Group LLC has agreed to pay a fine of $100,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From July 2016 through April 2018 and from August 2021 through March 2022, Odeon Capital failed to timely report approximately 640 trades to the Trade Reporting and Compliance Engine (TRACE), and, from February 2017 through April 2018, incorrectly reported approximately 130 internal transfers to TRACE as securitized products transactions, when they were not reportable.
As a result, Odeon Capital violated FINRA Rules 6730 and 2010.
In addition, from February 2017 through August 2019, Odeon Capital failed to timely report approximately 225 trades to the Municipal Securities Rulemaking Board’s (MSRB) Real-time Transaction Reporting System (RTRS), and, from February 2017 through March 2021 and from January 2022 through August 2022, incorrectly reported approximately 3,250 internal transfers to the RTRS as municipal securities transactions, when they were not reportable.
As a result, the firm violated MSRB Rule G-14.
Furthermore, from July 2016 through July 2022, the firm’s supervisory system, including its written supervisory procedures (WSPs), was not reasonably designed to achieve compliance with TRACE and MSRB reporting rules. As a result, the firm violated FINRA Rules 3110 and 2010 and MSRB Rule G-27.
In addition to the $100,000 fine, the firm has agreed to a censure.