Barclays Capital Inc. has been fined $1.3 million by the Financial Industry Regulatory Authority (FINRA) for allegedly failing to accurately report billions of trades during an eight-year period dating back to 2008.
FINRA accused Barclays of several order audit trail system reporting violations by submitting over 3 billion incorrect or incomplete trade reports – and failing to submit nearly 332 million trade reports entirely.
The regulatory agency identified 15 problems at issue here, ranging from mistakes by third-party vendors and an algorithmic error in the firm’s trading platform. These errors amounted to a value of nearly 3% of all reportable order events dating back to September 2008.
Barclays was also charged with failure to maintain adequate supervisory systems to catch these errors and flag the missing or incorrect/incomplete reports. The fine breaks down to $950,000 for inaccurate recording violations and $350,000 for inadequate supervision.
Just last year alone, Barclays paid $800,000 to settle claims that it failed to update its reporting systems to meet FINRA guidelines that were updated in 2009, and an additional $1 million to settle FINRA claims that it issued flawed data on a bond index it published and then failed to fix for months after its discovery.
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