SpeedTrader agreed to FINRA $165K settlement over inadequate controls and procedures.
Interestingly, this was not the first regulatory action against the online broker.
SpeedTrader
Inc., an online brokerage firm, has agreed to pay a $165,000 fine and accept a
censure from the Financial Industry Regulatory Authority (FINRA) for failing to
properly supervise potentially manipulative trading and maintain adequate
market access controls.
SpeedTrader Fined $165,000
for Market Access and Supervision Failures
The
Katonah, New York-based firm, which primarily serves day traders and
institutional clients, consented to FINRA's findings without admitting or
denying the allegations. The settlement covers violations that occurred between
November 2017 and January 2020.
FINRA found
that SpeedTrader, which provided direct market access to approximately 570
customers, including numerous China-based day traders, failed to establish a
reasonable supervisory system to detect and prevent potentially manipulative
trading practices. The firm relied on an automated third-party surveillance
system but did not tailor its parameters to SpeedTrader's specific business
model or customer base.
“SpeedTrader
failed to establish, document, and maintain reasonable market access controls
and procedures,” FINRA commented in the official statement.
The
regulator also cited SpeedTrader for inadequate follow-up on suspicious trading
alerts and for assigning only one trader identification number per customer
account, even when multiple traders were authorized. This practice limited the
firm's ability to identify specific individuals responsible for potentially
problematic trades.
In addition
to supervision failures, FINRA determined that SpeedTrader violated market
access rules by not maintaining direct control over customer credit thresholds.
The firm improperly relied on its clearing firms to set and monitor these
limits.
As part of
the settlement, SpeedTrader agreed to certify within 90 days that it has
remediated the issues identified by FINRA and implemented improved supervisory
systems and procedures.
This is not
the first regulatory action against SpeedTrader. In 2015, multiple exchanges
censured and fined the firm $595,000 for similar supervisory and market access
control deficiencies.
The latest
fine will be divided among FINRA and several stock exchanges, with $13,200
going to FINRA directly. SpeedTrader has submitted a payment plan and waived
its right to appeal the decision.
The SpeedTrader settlement was one of the many FINRA's actions in recent weeks. The regulatory body has issued several other fines against financial institutions for various regulatory infractions. TradeZero America, Inc., a retail trading platform based in Brooklyn and a member of FINRA since 2016, was fined $250,000. The penalty was for multiple regulatory breaches that occurred from July 2020 to October 2022, including the misuse of social media influencers and the distribution of inaccurate privacy notices to customers.
In another case, FINRA imposed a $90,080 fine on BofA Securities for the untimely or inaccurate submission of required notifications to the regulator. Furthermore, BofA Securities was cited for its failure to uphold an adequate supervisory system to ensure compliance with regulatory deadlines.
Simultaneously, RBC Capital Markets faced a penalty from FINRA, being fined $375,000 for not adhering to trade confirmation regulations. The settlement included an acknowledgment by the firm of its failure to provide accurate and timely trade confirmations to its clients
SpeedTrader
Inc., an online brokerage firm, has agreed to pay a $165,000 fine and accept a
censure from the Financial Industry Regulatory Authority (FINRA) for failing to
properly supervise potentially manipulative trading and maintain adequate
market access controls.
SpeedTrader Fined $165,000
for Market Access and Supervision Failures
The
Katonah, New York-based firm, which primarily serves day traders and
institutional clients, consented to FINRA's findings without admitting or
denying the allegations. The settlement covers violations that occurred between
November 2017 and January 2020.
FINRA found
that SpeedTrader, which provided direct market access to approximately 570
customers, including numerous China-based day traders, failed to establish a
reasonable supervisory system to detect and prevent potentially manipulative
trading practices. The firm relied on an automated third-party surveillance
system but did not tailor its parameters to SpeedTrader's specific business
model or customer base.
“SpeedTrader
failed to establish, document, and maintain reasonable market access controls
and procedures,” FINRA commented in the official statement.
The
regulator also cited SpeedTrader for inadequate follow-up on suspicious trading
alerts and for assigning only one trader identification number per customer
account, even when multiple traders were authorized. This practice limited the
firm's ability to identify specific individuals responsible for potentially
problematic trades.
In addition
to supervision failures, FINRA determined that SpeedTrader violated market
access rules by not maintaining direct control over customer credit thresholds.
The firm improperly relied on its clearing firms to set and monitor these
limits.
As part of
the settlement, SpeedTrader agreed to certify within 90 days that it has
remediated the issues identified by FINRA and implemented improved supervisory
systems and procedures.
This is not
the first regulatory action against SpeedTrader. In 2015, multiple exchanges
censured and fined the firm $595,000 for similar supervisory and market access
control deficiencies.
The latest
fine will be divided among FINRA and several stock exchanges, with $13,200
going to FINRA directly. SpeedTrader has submitted a payment plan and waived
its right to appeal the decision.
The SpeedTrader settlement was one of the many FINRA's actions in recent weeks. The regulatory body has issued several other fines against financial institutions for various regulatory infractions. TradeZero America, Inc., a retail trading platform based in Brooklyn and a member of FINRA since 2016, was fined $250,000. The penalty was for multiple regulatory breaches that occurred from July 2020 to October 2022, including the misuse of social media influencers and the distribution of inaccurate privacy notices to customers.
In another case, FINRA imposed a $90,080 fine on BofA Securities for the untimely or inaccurate submission of required notifications to the regulator. Furthermore, BofA Securities was cited for its failure to uphold an adequate supervisory system to ensure compliance with regulatory deadlines.
Simultaneously, RBC Capital Markets faced a penalty from FINRA, being fined $375,000 for not adhering to trade confirmation regulations. The settlement included an acknowledgment by the firm of its failure to provide accurate and timely trade confirmations to its clients
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Week In Review: Chaos at BDSwiss , IronFX Founder's Prop Firm, US FX Deposits, and More
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
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As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage.
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In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Ready to Scale? Regtech in Australia, A Global View | FMPS:24
Ready to Scale? Regtech in Australia, A Global View | FMPS:24
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
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🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage.
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In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Resilience in Trading: From Third Class To World Class | FMPS:24
Resilience in Trading: From Third Class To World Class | FMPS:24
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
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IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
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For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
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