GTS Securities has been fined $150,000 by the Financial Industry Regulatory Authority (FINRA), it was revealed Friday.
GTS Securities Fined $150,000 By FINRA
FINRA said in its release that the fine is for publishing inaccurate trade execution reports and failing to maintain adequate supervisory procedures.
New York-based GTS, which specialises in market-making and proprietary trading, also received a censure as part of the settlement.
According to FINRA, between May 2019 and March 2021, GTS published 23 inaccurate monthly reports related to the execution of orders in National Market System (NMS) securities.
The reports, required under Regulation NMS Rule 605, reportedly contained erroneous order and execution quality statistics, with FINRA stating that over 80% of the reported 25,000 orders did not meet the definition of a covered order.
The inaccuracies are said to have stemmed from multiple coding errors in GTS’s proprietary reporting system.
FINRA identified these issues during a March 2021 examination. The issues are said to have prompted GTS to switch to a third-party vendor for its reporting and issue corrected reports in November 2021.
Beyond the reporting failures, FINRA said it found that GTS’s supervisory system was inadequate. The firm lacked written supervisory procedures (WSPs) and internal reviews to ensure compliance with Rule 605.
GTS updated its procedures in August 2021, implementing new oversight measures.
In response to FINRA’s findings, GTS agreed to the fine and censure without admitting or denying the allegations.
