FINRA fines Wedbush Securities over reporting violations

Maria Nikolova

Between January 1, 2017 and June 30, 2017, Wedbush failed to transmit to OATS 237,457 reportable order events and inaccurately transmitted an additional 82,959 ROEs.

Wedbush Securities has agreed to pay a fine of $30,000 as a part of a settlement with the United States Financial Industry Regulatory Authority (FINRA) over reporting violations.

FINRA Rule 7450 requires member firms to transmit to OATS, in an electronic format prescribed by FINRA, a report containing each applicable item of order information whenever an order is originated, received, transmitted to another department within the member or to another member, modified, canceled, or executed.

FINRA Rule 7460 states that a member firm’s failure to comply with Rule 7450 may constitute a violation of FINRA Rule 2010, which requires members to observe high standards of commercial honor and just and equitable principles of trade.

Between January 1, 2017 and June 30, 2017 (the “Review Period”), due to system issues that arose during Wedbush’s transition between third-party order management systems, Wedbush failed to transmit to OATS 237,457 ROEs on 117 business days. These 237,457 ROEs constitute 19.98% of the 1,188,593 ROEs submitted by the firm during the Review Period.

In addition, due to the same systems issues, Wedbush transmitted to OATS 82,959 ROEs containing inaccurate, incomplete, or improperly formatted data. Specifically, the reports contained inaccurate Sent to Firm MPIDs. These 82,959 inaccurate ROEs represent 6.98% of the 1,188,593 ROEs submitted by the firm during the Review Period.

Due to the above-described behavior, Wedbush violated FINRA Rules 7450 and 2010. On top of the fine of $30,000, the respondent has agreed to a censure.

Read this next

Digital Assets

Alameda sues Voyager Digital to recover $445 million

FTX’s failed trading arm, Alameda Research, asked a court to claw back $445 million from Voyager Digital, which it said SBF’s empire paid to the crypto lender before collapsing into bankruptcy.

Metaverse Gaming NFT

Toyota taps Astar Network to explore Web3 in grand style

Although the crypto ecosystem has faced its fair share of bumps, Japanese automaker Toyota is seemingly bullish about the space and continue to look at Web3 as a promising opportunity.

Digital Assets

Bitcoin dominates inflows into crypto funds, AuM hits $28B

As the price of bitcoin continues to consolidate around recent highs, investors expand their positions in funds designed to profit from further appreciation in the cryptocurrency.

Institutional FX

Fiserv secures major payment institution licence in Singapore

Brookfield-based financial services technology provider Fiserv Inc has obtained nod for a Major Payment Institution license in Singapore.

Institutional FX

Finalto expands NDFs line-up with Taiwanese dollar

Finalto announced today that it has expanded its non-deliverable forwards (NDFs) offering with the addition of Taiwan’s dollar to its trading platform.


It’s time for FX to Harness Crypto’s Potential

Jonathan Cumberlidge, FX Sales Director for BVNK, makes the case for cryptocurrencies in improving the efficiency and flexibility of foreign exchange trading.

Digital Assets

Owner of OptionMint, OptionKing, and OptionQueen gets 30 months in prison

A US federal judge has sentenced Ohio resident Jared Davis, who was found guilty for his participation in a multi-million fraud scheme carried out by Israeli-run binary options websites.

Executive Moves

iS Prime co-founders Raj Sitlani and Jonathan Brewer leave, but “business as usual”

“For our clients and teams at iS Prime, iS Risk and iS Prime Hong Kong, it is business as usual. We will be increasing our investment in our technology and staff, putting our clients first as we drive the business forwards to maintain our market leadership position.”

Digital Assets

Germany-focused DekaBank taps METACO for digital asset custody offering

“Digital assets are a critical part of the future, a radical new way for how assets will be represented, from currencies to real estate.”