FINRA Fines StoneX $60,000 for Compliance Failures

Financial Industry Regulatory Authority (FINRA), a self-regulatory body, has penalized StoneX Financial with a censure order and a fine of $60,000 for multiple Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term failures.

According to the official notice issued on Monday, FINRA found that StoneX failed to immediately display, route, execute or cancel 27 out of 35 (77 percent) sampled exceptions of customer limit orders during the third quarter of 2017 and the second quarter of 2018. 14 of these orders were cancelled/replaced orders.

Additionally, the financial services company failed to establish and maintain a supervisory system, including WSPs, to ensure compliance within the system. With all these lapses, StoneX has violated multiple rules of FINRA’s regulatory regime.

“This matter originated from FINRA's OTC Limit Order Display Rule Sweep, which monitors member firms’ compliance with FINRA Rule 6460 and focuses on customer limit orders that, upon receipt, were not immediately fully displayed, routed, executed or canceled,” the notice stated.

Order Is Accepted

StoneX, which is a broker-dealer, has already accepted and consented to FINRA’s orders, but did not accept or deny any of the allegations.

“Pursuant to FINRA Rule 9216, Respondent StoneX Financial Inc. submits this Letter of Acceptance, Waiver and Consent (AWC) for the purpose of proposing a settlement of the alleged rule violations,” the notice added.

“This AWC is submitted on the condition that, if accepted, FINRA will not bring any future actions against the Respondent alleging violations based on the same factual findings described in this AWC.”

Meanwhile, FINRA is actively busting US financial companies for any rule violations. Most recently, it fined GFI Securities $75,000 for violating mandatory block trade reporting Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term.