The Financial Industry Regulatory Authority (Finra) has fined the US -based mediation speed, which issued a dance after finding the company in maintaining sufficient supervisory systems to detect the trading activity that is likely to be the manipulation.
According to the acceptance, concession, and approval published by the Finra, the failures from December 2019 extended to a present and participated in the Finra 3110 and 2010 bases.
The organizer explained that the written supervisory procedures for Velocity did not provide sufficient guidance on how to assess alerts for deception, layers, washing trading, cross trade, and pre -trading, and did not specify when the concerns escalate.
Finra noted that Velocity’s automatic monitoring system has generated approximately 150,000 alerts between December 2019 and June 2023, but the company closed more than others without reasonable review.
In one case, more than 10,000 alerts for the trading arriving over a period of two months were created in 2022-23 but it was never reviewed.
Finra added that the compliance department, which sometimes relied on one employee, often closed hundreds or even thousands of alerts in one day without further investigation.
Since mid -2013, the company’s new monitoring system has achieved about 15.2 million alerts, the vast majority of which were also closed without achieving, with more than 5.2 million alerts that were not reviewed by early 2025.
As part of the settlement, Velocity must appoint an independent advisor to conduct a comprehensive review of its supervisory policies and systems, and implement recommendations to enhance censorship. Moreover, Finra stated that $ 81,056 of the fine will be paid, with the rest to various exchanges.
The speed has not been accepted and the results are not denying, but they accepted the penalties.