UBS AWC – findings that that it provided market access to two affiliates without accounting for those affiliates in its financial risk management controls. The findings stated that the firm maintained a proprietary order management system that it and its affiliates used for trading in listed futures and options. In addition, the firm maintained a third-party order management system that it and its affiliates used primarily to enter good-till-cancelled spread orders. The firm established credit thresholds and erroneous order controls based upon its mistaken belief that the options orders entered through both order management systems were entered by a single firm affiliate. In fact, a firm employee was able to enter orders on behalf of two additional firm affiliates into both order management systems.
Highlights from the release, which is available at https://www.finra.org/sites/default/files/2022-07/Disciplinary_Actions_July_2022_0.pdf
Other firms –
- fined $20,000 for late filings for private offerings, over 88 days late
- $70,000 for supervisory system failings for Regulation SHO
- $200,000 for overstating trading volume in varied securities
- $5,000 fine and 3 month suspension for failing to provide written notice to firm of an OBA
- $5,000 fine and 18 month suspension for having unauthorized materials while taking the NASAA Series 66 exam.
- $5,000 and 3 month suspension and ordered to pay $48,000 in restitution for recommending and excessively trading customer accounts.
- Dozens of broker permanently barred for failing to produce documents and/or appear at an on-the-record interview.