FINRA fines Nomura for violations of short interest reporting requirements

Maria Nikolova

As a result of a coding issue, Nomura failed to report 3,129 short interest positions totaling 885,607,733 shares.

The United States Financial Industry Regulatory Authority (FINRA) has imposed a fine of $300,000 on Nomura Securities International, Inc. The fine is a part of a settlement offer submitted by the respondent and accepted by FINRA on December 6, 2019.

In summary, during the period May 2012 through November 2015 (the “Review Period”), Nomura failed to comply with FINRA’s short interest reporting requirements concerning the reporting of certain foreign-listed securities. The firm also failed to establish a supervisory system, including written supervisory procedures, that was reasonably designed to achieve compliance with FINRA Rule 4560, FINRA’s short interest reporting rule.

During the review period, Nomura experienced a system related coding issue that led to the exclusion of certain foreign-listed securities from Nomura’s short interest submissions to FINRA. In particular, Nomura failed to include short interest positions in certain foreign-listed securities that shared an ISIN with United States-listed securities. Due to the coding issue, Nomura failed to report 3,129 short interest positions totaling 885,607,733 shares.

In addition, Nomura inaccurately reported six short interest positions totaling 6,790 shares when it should have reported six short interest positions totaling 68,724 shares. Upon receiving notification from FINRA of the reporting deficiencies, Nomura identified and corrected the coding issue in November 2015.

Further, during the review period, Nomura’s supervisory system was not reasonably designed to achieve compliance with its short interest reporting obligations under FINRA Rule 4560. Although the firm was aware of the requirement to report short positions in foreign-listed securities, its written supervisory procedures only noted the reporting requirement and did not provide supervisory guidance, or describe any reviews to be performed, to ensure the firm’s short interest positions in foreign-listed securities were included in the firm’s short interest submissions. Accordingly, Nomura failed to establish and maintain a supervisory system to ensure that it was in fact including all reportable positions in its FINRA 4560 submissions, including reportable positions it held in foreign-listed securities.

On top of the $300,000 fine, which comprises $200,000 for the short interest reporting violations and $100,000 for the related supervision violations, Nomura has agreed to a censure.

Read this next

blockdag

BlockDAG’s Revolutionary Dev Release 36: Off-Chain PoW and a $30 Projection by 2030

Explore BlockDAG’s latest off-chain PoW innovation and its $32M presale success. Projected to reach $30 by 2030.

blockdag

30,000x ROI Potential: BlockDAG Secures $33.5M in Presale, Outruns Retik Finance’s Bitmart Performance

Uncover how BlockDAG’s impressive $33.5M presale and its innovative platform draw investors away from Retik Finance following the Bitmart listing.

blockdag

IT Professional Switches to Lucrative Crypto Mining Entrepreneur with BlockDAG’s Advanced Mining Technology

Learn how an IT pro turned Litecoin mining into a fortune. See if BlockDAG can match this with advanced mining tech and 30,000X ROI potential.

blockdag

May 2024 Crypto Spotlight: Why Whales Are Choosing BlockDAG Over Retik Finance, Will CoinW & P2B Listing Save $RETIK?

Uncover why BlockDAG is winning over smart investors in May 2024, and surpassing Retik Finance’s performance on exchanges like CoinW and P2B.

blockdag

Ethereum Leads Altcoins Toward a Huge Rally: Expert Top Picks for Altseson Unveiled

A fresh surge in alternative cryptocurrencies is building momentum as Ethereum leads the charge.

Chainwire

BEVM Unveils Groundbreaking Taproot Consensus for Decentralized Bitcoin Layer 2 Solution

On May 20, 2024, the Bitcoin Layer2 development team BEVM released the technical yellow paper titled “Taproot Consensus: A Decentralized BTC Layer2 Solution.”

blockdag

AI Cryptos to Pump Hard After NVIDIA’s Q1 Earnings 📊

The recent earnings from a tech giant have hinted at a significant upswing for AI-focused cryptocurrencies.

Retail FX

Weekly Roundup: Republican to end Fed, Bankman-Fried moves to California

Let’s take a look back at top stories that dominated the financial markets in our Weekly Round coverage. This week’s digest takes a deep dive into the most recent events and trends within the Forex, Fintech, and cryptocurrency.

blockdag

BlockDAG’s $32.8M Presale Outshines Retik Finance’s MEXC Listing, Featuring Cutting-Edge Dashboard Innovations

Explore how BlockDAG’s innovations overshadow Retik Finance’s MEXC debut, attracting investors to its vibrant platform for unparalleled gains.

<