Citadel Securities Among Firms Fined Over Trading Data Errors

(Bloomberg) -- Citadel Securities LLC and two other brokerages agreed to pay fines to settle U.S. Securities and Exchange Commission claims that they filed incomplete and inaccurate securities trading information to the agency.

Key Details

  • Citadel will pay $3.5 million over violations stemming from incorrect reporting for nearly 80 million trades from 2012 to 2016, the SEC said in a statement Monday. The deficiencies largely stemmed from an undetected coding error, the agency said.
  • MUFG Securities Americas Inc. separately agreed to pay $1.4 million over deficiencies in reporting from 2015 to 2018. Natixis Securities Americas LLC agreed to a $1.25 million fine over violations from 2012 to 2017.
  • Banks are required to report data to the SEC on time of trades, types of trades, volume traded and other customer-identifying information.
  • The SEC requires brokerages to submit complete and accurate trading data to help the agency carry out its regulatory and enforcement responsibilities. The data can help the regulator ferret out misconduct such as insider trading.
  • “Firms must be diligent and take seriously their obligations to provide accurate and complete data in response to our requests,” the SEC said in its statement.
  • A spokesperson for MUFG Securities Americas said in an emailed statement that the company “has instituted new reporting controls and is fully committed to complying with regulatory requirements in every jurisdiction in which we operate.” Attorneys for Citadel and Natixis didn’t respond to messages seeking comment.

©2018 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.