The Financial Industry Regulatory Authority has suspended and fined a clearing firm executive for sending and receiving thousands of business communications via WeChat, a non-firm communications platform, that Velox Clearing failed to capture and review.
FINRA suspended Bingshan Song for one month in all capacities, followed by a four-month suspension in all principal capacities. He must also complete 10 hours of continuing education and pay a $25,000 fine. Song neither admitted nor denied FINRA's findings.
According to FINRA's order, between February 2021 and May 2025, Song was the CEO of Velox Clearing, based in Miami. He is now chief strategy officer, according to the firm's BrokerCheck profile. Song is also listed as the CEO of Zinvest Financial Service, a broker-dealer owned by Velox Holding.
WeChat is an instant messaging and social media application that allows its users, among other things, to exchange messages, make internet telephone calls, share videos and engage in video conferences.
"At all relevant times, WeChat was not an approved platform for written communication at Velox and the firm, therefore, did not retain or review communications its employees sent or received via WeChat," the order states.
Velox's written supervisory procedures prohibited associated persons from communicating about securities business via unapproved communications channels. Song used and knew that other firm personnel used WeChat for business-related communications, according to the order.
"He was a member of WeChat group chats in which the firm's associated persons discussed firm business, including pre-trade risk controls and personnel issues," the order states.
Song was also a member of WeChat group chats "between the firm's associated persons and firm customers in which the customers' trading at the firm was discussed. Song himself sent or received thousands of business-related messages via WeChat group chats," FINRA said.
He "failed to take reasonable steps to supervise these off-channel communications. Despite his knowledge that the firm's associated persons were sending and receiving business-related WeChat messages, he failed to stop the communications or ensure the firm captured, retained, and reviewed these messages," FINRA stated.
"When firm compliance personnel communicated concerns that WeChat was being used, Song still failed to take any reasonable supervisory steps," according to FINRA.
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