The Financial Industry Regulatory Authority censured and fined Barclays Capital $2.5 million for failing to report, or inaccurately reporting, over-the-counter options positions to the large options positions reporting system in approximately 4.3 million instances in violation of FINRA rules from January 2011 through December 2022.
According to FINRA, the firm also failed to establish and maintain a supervisory system reasonably designed to achieve compliance with FINRA rules.
Headquartered in New York City with 16 branches and approximately 3,000 registered representatives, Barclays Capital became a FINRA member in October 1987. The firm’s business includes options and equities trading on behalf of itself and customers, underwriting and market-making.
In May 2018, FINRA, Cboe BZX Exchange Inc., and Miami International Securities Exchange LLC censured and fined the firm $400,000 for failing to report options positions to the LOPR system in over 310,000 instances and inaccurately reporting options positions to the LOPR in 2.7 million instances between January 2010 and December 2015, and imposed an undertaking requiring the firm to correct supervisory and technological deficiencies.
In January 2014, FINRA also censured and fined the firm $750,000 for failing to report positions to the LOPR in over 1.47 million instances, submitting inaccurate reports in over 700,000 instances, exceeding applicable position limits in four options, and failing to establish and maintain a supervisory system reasonably designed to achieve compliance with LOPR requirements and applicable position limits between January 2010 and March 2013.
FINRA noted that in determining sanction against Barclays, they took into consideration that the firm identified, self-reported and remediated the issues that led to the fine and censure.
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