How long has Citigroup existed? How many audits have been conducted? Short selling and short reporting must be new to Citigroup.
Citigroup GlobalMarkets, Inc. (CRD #7059, NewYork, NewYork) submitted a Letter of
Acceptance,Waiver and Consent in which the firmwas censured and fined $300,000.
Without admitting or denying the findings, the firmconsented to the described
sanctions and to the entry of findings that during a review of its short interest
reporting, it discovered that it had misreported short interest positions to FINRA for an
indeterminate period of time due to computer coding issues. The findings stated that
the firm’s supervisory system did not provide for supervision reasonably designed to
achieve compliance with applicable securities laws, regulations and NASD rules
concerning short interest reporting. (FINRA Case #20041000119-01)
Instinet, LLC (CRD #7897, NewYork, NewYork) submitted a Letter of Acceptance,Waiver
and Consent in which the firmwas censured, fined $12,500 and required to revise its
written supervisory procedures with respect to best execution, short sales, trading halts
and trade reporting.Without admitting or denying the findings, the firmconsented to
the described sanctions and to the entry of findings that it failed to provide written
notification disclosing to its customers that transactions were executed at an average
price. The findings stated that the firm’s supervisory systemdid not provide for
supervision reasonably designed to achieve compliance with applicable securities laws,
regulations and NASD rules concerning best execution, short sales, trading halts and
trade reporting. (FINRA Case #20050020916-01)
Miller Johnson Steichen Kinnard, Inc. (CRD #694,Minneapolis,Minnesota) submitted
a Letter of Acceptance,Waiver and Consent in which the firm was censured and fined
$15,000.Without admitting or denying the findings, the firm consented to the
described sanctions and to the entry of findings that it executed short sale orders and
failed to properly mark the orders as short. The findings stated that the firm
transmitted reports that contained inaccurate, incomplete or improperly formatted
data to OATS. The findings also stated that the firmmade available a report on the
covered orders in national market system securities that it received for execution from
any person that included incorrect information. (FINRA Case #20050011915-01)
Gee, isn't that a naked short? And to think, it was treated as a 'compliance violation'.
Tradestation Securities, Inc. (CRD #39473, Plantation, Florida) submitted a Letter of
Acceptance,Waiver and Consent in which the firm was censured and fined $12,500.
Without admitting or denying the findings, the firmconsented to the described
sanctions and to the entry of findings that it accepted customer short sale orders and,
for each order, failed tomake an affirmative determination that the firm would receive
delivery of the security on the customer’s behalf, or that the firm could borrow the
security on the customer’s behalf for delivery by settlement date. (FINRA Case
#20070090219-02) |
