The
Financial Industry Regulatory Authority (FINRA) has fined online brokerage firm
TradeStation Securities $700,000 for anti-money laundering (AML) failures from
2016 to 2022. This is the second penalty the company has received from U.S.
regulators in recent week.
According
to the FINRA documents, TradeStation failed to reasonably escalate potentially
suspicious customer trading activity for further AML review to determine if
suspicious activity reports should be filed.
Specifically,
TradeStation did not have adequate procedures for analysts reviewing automated
trade surveillance alerts to escalate suspicious trading to the AML department
consistently. As a result, certain potentially suspicious activity was not
further reviewed or reported.
“The
firm’s AML program did not include reasonable procedures concerning the escalation
of potentially suspicious customer trading to determine whether the activity should
be reported to FinCEN, including the factors to consider or the process that
should be followed,” FINRA commented.
Examples
cited include a customer involved in potential pump-and-dump schemes, an
institutional customer with significant alerts for wash trades and layering,
and a retail customer with alerts for wash trading and marking the close.
In addition
to the $700,000 fine, TradeStation must certify in writing that it has
remediated the AML issues within 60 days.
TradeStation
Securities, founded in 1982 and based in Plantation, Florida, is an online
brokerage firm providing trading platforms for self-directed investors. In
2011, TradeStation was previously fined $200,000 by FINRA for AML deficiencies.
Another Week, Another Fine
for TradeStation
TradeStation
has faced more than one penalty in the USA within the last week. As reported by
Finance Magnates, the company’s cryptocurrency division was fined $1.5
million by the Securities and Exchange Commission (SEC
Securities and Exchange Commission (SEC)
The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha
The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha
Read this Term). The company consented
to pay this fine to resolve allegations related to its crypto asset account
interest-earning feature.
The SEC’s
announcement detailed that TradeStation Crypto had marketed and sold a crypto
lending product as a security without proper registration. Despite voluntarily
discontinuing the product on June 2022, TradeStation still incurred fines.
The North
American Securities Administrators Association (NASAA) also disclosed a $1.5
million settlement
Settlement
Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2
Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2
Read this Term with TradeStation Crypto, Inc. over its crypto
interest-earning program. The company was accused of not adhering to state
registration requirements and failing to provide investors with essential
information and risk disclosures.
In more
positive developments, the company recently joined its forces with the technology
solutions provider for traders and brokers, CQG. The integration is set to
offer investors a new trading toolkit.
The
Financial Industry Regulatory Authority (FINRA) has fined online brokerage firm
TradeStation Securities $700,000 for anti-money laundering (AML) failures from
2016 to 2022. This is the second penalty the company has received from U.S.
regulators in recent week.
According
to the FINRA documents, TradeStation failed to reasonably escalate potentially
suspicious customer trading activity for further AML review to determine if
suspicious activity reports should be filed.
Specifically,
TradeStation did not have adequate procedures for analysts reviewing automated
trade surveillance alerts to escalate suspicious trading to the AML department
consistently. As a result, certain potentially suspicious activity was not
further reviewed or reported.
“The
firm’s AML program did not include reasonable procedures concerning the escalation
of potentially suspicious customer trading to determine whether the activity should
be reported to FinCEN, including the factors to consider or the process that
should be followed,” FINRA commented.
Examples
cited include a customer involved in potential pump-and-dump schemes, an
institutional customer with significant alerts for wash trades and layering,
and a retail customer with alerts for wash trading and marking the close.
In addition
to the $700,000 fine, TradeStation must certify in writing that it has
remediated the AML issues within 60 days.
TradeStation
Securities, founded in 1982 and based in Plantation, Florida, is an online
brokerage firm providing trading platforms for self-directed investors. In
2011, TradeStation was previously fined $200,000 by FINRA for AML deficiencies.
Another Week, Another Fine
for TradeStation
TradeStation
has faced more than one penalty in the USA within the last week. As reported by
Finance Magnates, the company’s cryptocurrency division was fined $1.5
million by the Securities and Exchange Commission (SEC
Securities and Exchange Commission (SEC)
The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha
The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha
Read this Term). The company consented
to pay this fine to resolve allegations related to its crypto asset account
interest-earning feature.
The SEC’s
announcement detailed that TradeStation Crypto had marketed and sold a crypto
lending product as a security without proper registration. Despite voluntarily
discontinuing the product on June 2022, TradeStation still incurred fines.
The North
American Securities Administrators Association (NASAA) also disclosed a $1.5
million settlement
Settlement
Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2
Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2
Read this Term with TradeStation Crypto, Inc. over its crypto
interest-earning program. The company was accused of not adhering to state
registration requirements and failing to provide investors with essential
information and risk disclosures.
In more
positive developments, the company recently joined its forces with the technology
solutions provider for traders and brokers, CQG. The integration is set to
offer investors a new trading toolkit.