Barclays Capital Inc. (CRD# 19714 / SEC# 8-41342) was fined $1.3 million
by the Financial Industry Regulatory Authority (FINRA) for supervisory
failures related to systemic reporting violations to the Order Audit Trail
System (OATS) on Wednesday, August 3.
Barclays Capital neither denied nor admitted to the charges in concluding
the settlement, but consented to the entry of FINRA’s findings.
Under FINRA’s regulations, firms are required to transmit accurate
and complete OATS data that relates to the events in an order’s
lifecycle, also known as Reportable Order Events (ROEs). During FINRA’s
investigation, they discovered that Barclays Capital had 15 system issues
that resulted in the OATS reporting violations. Among the over 3 billion
incomplete or inaccurate ROEs to OATS, including:
- Omitted special handling codes
- Inaccurate timestamps
- Member type codes and execution quantities
- Erroneous or duplicate reports
Head of Market Regulation and Executive Vice President at FINRA Thomas
Gira had this to say about the fines:
“When firms fail to transmit OATS data or transmit inaccurate or
incomplete data to OATS, market integrity is compromised because potential
violative conduct, including manipulative activity and customer harm,
may be obscured. OATS data is essential to FINRA’s automated equities
surveillance program and is therefore critical to investor protection.”
Contact the securities fraud attorneys at Meyer Wilson today if you lost
money investing with a Barclays Capital broker.
Visit our website for a free case consultation, or call us at (888) 390-6491 to speak with one of our securities fraud
lawyers. All of our cases are handled on a contingency fee basis, so you
won’t owe any legal fees until we help you recover your losses.