MCAP LLC has agreed to pay a fine of $125,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From at least October 2017 to May 2024, MCAP violated FINRA Rules 3110 and 2010 by failing to establish and maintain a system reasonably designed to supervise the firm’s electronic communications.

During this period, MCAP’s written procedures failed to identify who was responsible for conducting supervisory reviews of its designated principals’ electronic communications, and the firm allowed certain designated principals to conduct supervisory reviews of their own electronic communications.

As a result, MCAP failed to reasonably review thousands of electronic communications sent or received by its designated principals over an approximate seven-year period.

In addition, from at least October 2017 to October 2025, MCAP violated FINRA Rules 3110 and 2010 by failing to reasonably supervise both the firm’s OTC sponsorship and market making businesses for compliance with Rule 15c2-11 under the Securities Exchange Act of 1934 and for compliance with FINRA Rule 6432.

The firm has agreed to a censure on top of the $125,000 fine.

MCAP LLC has been a FINRA member firm since June 2006. The firm has three branch offices and approximately 50 registered persons. The firm’s principal place of business is in New York, New York. MCAP specializes in electronic market making, including in over-the-counter (OTC) securities.