Susquehanna Financial Group has been censured and fined $100,000 by the Financial Industry Regulatory Authority (FINRA) for inaccurately reporting approximately 74,000 transactions and failing to maintain an adequate supervisory system.
Susquehanna Fined By FINRA
The findings, which Susquehanna accepted without admitting or denying, relate to violations that occurred between February 2021 and May 2023.
FINRA’s investigation revealed that Susquehanna failed to include the mandatory “No Remuneration” (NR) indicator in TRACE reports for transactions where no commission, mark-up, or mark-down was charged.
“Susquehanna inaccurately reported transactions in TRACE-Eligible Securities without the required NR indicator,” FINRA said in its letter of acceptance, waiver and consent note.
This omission is said to impact audit trails and regulatory surveillance. The firm attributed the error to a transition to a new TRACE reporting system and is said to have since corrected the issue after FINRA brought it to their attention.
Furthermore, Susquehanna was found to have violated FINRA Rules 3110 and 2010 by not establishing or maintaining a supervisory system, including written procedures, specifically designed to ensure compliance with the NR indicator reporting requirement.
FINRA added that the firm has since amended its procedures to include supervisory review for the accuracy of the NR indicator.
