FINRA Fines StoneX $60,000 for Compliance Failures

Financial Industry Regulatory Authority (FINRA), a self-regulatory body, has penalized StoneX Financial with a censure order and a fine of $60,000 for multiple compliance failures.

According to the official notice issued on Monday, FINRA found that StoneX failed to immediately display, route, execute or cancel 27 out of 35 (77 percent) sampled exceptions of customer limit orders during the third quarter of 2017 and the second quarter of 2018. 14 of these orders were cancelled/replaced orders.

Additionally, the financial services company failed to establish and maintain a supervisory system, including WSPs, to ensure compliance within the system. With all these lapses, StoneX has violated multiple rules of FINRA’s regulatory regime.

“This matter originated from FINRA‘s OTC Limit Order Display Rule Sweep, which monitors member firms’ compliance with FINRA Rule 6460 and focuses on customer limit orders that, upon receipt, were not immediately fully displayed, routed, executed or canceled,” the notice stated.

Order Is Accepted

StoneX, which is a broker-dealer, has already accepted and consented to FINRA’s orders, but did not accept or deny any of the allegations.

“Pursuant to FINRA Rule 9216, Respondent StoneX Financial Inc. submits this Letter of Acceptance, Waiver and Consent (AWC) for the purpose of proposing a settlement of the alleged rule violations,” the notice added.

“This AWC is submitted on the condition that, if accepted, FINRA will not bring any future actions against the Respondent alleging violations based on the same factual findings described in this AWC.”

Meanwhile, FINRA is actively busting US financial companies for any rule violations. Most recently, it fined GFI Securities $75,000 for violating mandatory block trade reporting obligations.

Source: Read Full Article