FINRA Enforcement: Barclays Fined $800,000 Over Reporting Failures

Among recent enforcement actions by the Financial Regulatory Authority, Barclays Capital was censured and fined $800,000 for reporting failures; Capital One Sharebuilder was censures and fined $100,000, also for reporting failures; and First Southwest Co. LLC was censured and fined $450,000 for failing to deliver prospectuses for ETFs at time of delivery of the securities.

Barclays Capital Censured, Fined $800,000

FINRA censured Barclays Capital Inc. and fined the firm $800,000, as well as requiring it to revise its written supervisory procedures.

According to the agency, because the firm failed to change the reporting logic in its order management system to comply with a FINRA regulatory notice, Barclays failed to identify the correct executing party on nonmedia clearing reports with other broker-dealers that were reported to the FINRA/Nasdaq Trade Reporting Facility (FNTRF).

In addition, its supervisory system wasn’t adequate to achieve compliance with applicable laws, regulations and FINRA rules about accurate reporting of the executing party.

The firm neither admitted nor denied the findings but consented to the sanctions.

FINRA Censures, Fines Capital One Sharebuilder for Reporting Failures

Capital One Sharebuilder was censured by FINRA and fined $100,000 after the agency found that the firm failed to correctly report options positions to the Large Options Positions Report (LOPR) with the correct Clearing Member number.

According to the agency, the firm submitted options positions to the LOPR using a different file name than the one used on the firm’s prior Options Clearing Corporation (OCC) LOPR submissions. That kept the OCC from processing the LOPR position files, and caused the firm to fail to report any of its reportable options positions. All of the firm’s positions, however, had been reported to the LOPR via its clearing firm’s omnibus account.