The U.S. Financial Industry Regulatory Authority (FINRA) has fined New York-based Barclays Capital Inc. US$1.3 million for systemic reporting violations and related supervisory failures.
Specifically, the self-regulatory organization reports that it found 15 systems issues at the firm that gave rise to various reporting violations.
As a result, Barclays transmitted more than three billion inaccurate or incomplete reports, including inaccurate timestamps and execution data; and submitted duplicate, or erroneous, reports, FINRA says.
In addition, the firm failed to transmit reports and its supervisory system “was not reasonably designed to achieve compliance with its … reporting obligations,” FINRA adds.
The firm settled the allegations without admitting or denying them, but consented to the entry of FINRA’s findings.
“[Audit trail] data is essential to FINRA’s automated equities surveillance program and is therefore critical to investor protection,” says Thomas Gira, executive vice president and head of market regulation at FINRA, in a staement.