Standard Chartered Securities North America LLC has agreed to pay a fine of $95,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From September 2021 through March 2023, the firm failed to report to the Trade Reporting and Compliance Engine (TRACE) approximately 700 transactions in corporate debt securities within 15 minutes of the time of execution. These transactions constituted approximately 5% of the firm’s TRACE-eligible corporate debt transactions during that period.

Therefore, the firm violated FINRA Rules 6730(a) and 2010.

From at least September 2021 through December 2024, the firm failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with FINRA Rule 6730(a). The firm’s WSPs required the firm to conduct supervisory reviews for late TRACE reporting exceptions.

Although the firm identified and tracked late TRACE reports and escalated the late reports to supervisors, during the relevant period, the WSPs lacked guidance on how to remediate TRACE reporting deficiencies.

Prior to 2024, the firm had no system or procedure to address repeated TRACE reporting failures. Additionally, despite receiving communications from FINRA identifying TRACE reporting deficiencies as early as 2021, the firm did not timely address its deficiencies.

Since 2024, the firm has updated its supervisory system and procedures related to TRACE reporting. Specifically, the firm has established a working group comprised of compliance, operations and other personnel to monitor the firm’s TRACE reporting performance.

In January 2025, the firm implemented written procedures for tracking and escalating instances of late TRACE reporting.

Because it failed to establish and maintain a supervisory system, including WSPs, reasonably designed to achieve compliance with TRACE reporting requirements, the firm violated FINRA Rules 3110 and 2010.

On top of the $95,000 fine, the firm has agreed to a censure.