Financial Industry Regulatory Authority has fined the Odeon Capital $ 75,000 group of multiple supervisory failure, including insufficient systems to detect translated trading and failure to reveal the main information about customer trade assurances.
From July 2019 on July 2019, Odeon Capital, an intermediary in New York, has failed to create a supervisory system that is able to pre -manipulate trading, an illegal practice where buyers and sellers collude to implement traders at pre -specified prices.
Finra found that the company’s daily trade reports were not equipped to detect such patterns and lack appropriate control procedures. This led to at least 138 suspicious trading cases without review.
In addition, between December 2019 and December 2021, the company was said to have issued 717 customer trade assurances, which cover municipal debt transactions, companies and agency, without revealing the required information or information required.
These negligence violated the rules of the Board of Directors of the Bases (MSRB) in the Finra and the municipality, designed to protect investors and enhance transparency in the prices of transactions.
Finra is also cited with written ODEON procedures (WSPS) as incomplete, and does not provide any clear guidance on how to ensure appropriate disclosures or identify suspicious trading behavior.
The organizer stated that although the company has since modernized WSPS, it has agreed to conduct more treatment and provide a certificate at the higher level within 60 days, which confirms that effective systems are now.
Penalties include official blame and fine, with Odeon’s approval of penalties without recognizing or denying results.
This executive procedure follows a broader examination of the company’s trading practices.