In its October report, the Financial Industry Regulatory Authority listed the companies it has penalized for cases of misconduct and violation of rules.
On Aug. 1, FINRA imposed a $200,000 fine on Dinosaur Financial Group LLC. FINRA found that the firm failed to report Trade Reporting and Compliance Engine eligible securities transactions, and timely report transactions to the Municipal Securities Rulemaking Board's Real-Time Transaction Reporting System. The regulator also found that the company failed to establish and maintain a supervisory system and written supervisory procedures to ensure accurate reporting of transactions.
On Aug. 15, Lime Brokerage LLC was fined $625,000, of which $38,500 is payable to FINRA. The remaining balance is to be paid to other self-regulatory organizations in related matters. FINRA identified and reviewed potentially manipulative trading activity by its customers. The manipulative actions included practices such as layering, spoofing, ramping and marking. The firm did not have adequate procedures and surveillance to deal with the situation, and only one analyst was tasked with manually reviewing the alerts.
On Aug. 23, an SEC decision became final in which Windsor Street Capital LP was fined $500,000. The SEC affirmed the findings of a National Adjudicatory Council, which stated that the firm failed to adequately supervise its Chicago office and failed to establish and implement adequate anti-money laundering policies and procedures. A former registered representative engaged in market manipulation and defrauded customers due to the lack of surveillance. The firm is subject to a statutory disqualification under FINRA's bylaws.