Tradition Securities and Derivatives to pay $140k fine for violating FINRA rules
Tradition Securities and Derivatives LLC has agreed to pay a fine of $140,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
Tradition failed to record transmission times on its order tickets between January and September 2020, and failed to include the correct exchange of execution on its order tickets from April 13 to 17, 2020, in violation of the Securities Exchange Act of 1934 (Exchange Act) § 17(a), Exchange Act Rule 17a-3, and FINRA Rules 4511 and 2010.
In addition, Tradition failed to establish regulatory risk management controls and supervisory procedures reasonably designed to assure that appropriate surveillance personnel receive immediate post-trade execution reports that result from market access between January 2020 and the present, in violation of Exchange Act § 15(c)(3), Exchange Act Rules 15c3-5(b) and (c), and FINRA Rules 3110 and 2010; failed to demonstrate that the firm conducted an annual review of its business activity in connection with market access in 2020, in violation of Exchange Act § 15(c)(3), Exchange Act Rule 15c3-5(e), and FINRA Rule 2010.
Also, the company submitted a CEO certification in 2020 which failed to state that the firm’s risk management controls and supervisory procedures complied with paragraphs (b) and (c) of Exchange Act Rule 15c-5, and that the firm conducted an annual review of its business activity in connection with market access, in violation of Exchange Act § 15(c)(3), Exchange Act Rule 15c3-5(e), and FINRA Rule 2010.
The company has agreed to a censure on top of the fine, as well as to an undertaking that a member of Tradition’s senior management who is a registered principal of the firm shall certify in writing that, as of the date of the certification, the firm has remediated the issues and implemented a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with Exchange Act § 15(c)(3), Exchange Act Rules 15c3-5(b) and (c)(2)(iv), and FINRA Rules 3110 and 2010.