- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-09-22T18:24:00
Miami-based broker-dealer Citadel Securities was fined $7 million as part of a settlement with the Securities and Exchange Commission (SEC) addressing mismarked short and long sales caused by a coding error in the firm’s automated trading system.
Citadel violated Regulation SHO by providing inaccurate data to regulators, including the SEC, over a five-year period, the agency said in a press release Friday. The settlement requires Citadel to provide written certification regarding remediation of the coding error and a review of the firm’s computer programming and coding logic.
From September 2015 through September 2020, Citadel inadvertently marked certain short sale orders as long sales and vice versa while handling orders on behalf of its broker-dealer clients, resulting in an estimated millions of sell orders being mismarked, the SEC alleged in its order.
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Goldman Sachs agreed to pay $425,000 as part of a settlement with the Financial Industry Regulatory Authority addressing allegations of reporting and supervision violations regarding more than 1 million over-the-counter options positions.
Goldman Sachs was fined $3 million by the Financial Industry Regulatory Authority for mismarking nearly 60 million short sell orders as long and related supervision failures.
Weiss Asset Management reached a $6.9 million settlement with the Securities and Exchange Commission after it self-reported alleged short selling violations.
Purported “testimonial and review” service Rytr agreed to stop selling its program that used artificial intelligence to create fake content as part of a consent order with the Federal Trade Commission.
Bank of America avoided a monetary penalty in agreeing to settle charges with the Treasury Department’s Office of the Comptroller of the Currency but was ordered to shore up previously disclosed deficiencies in its Bank Secrecy Act/anti-money laundering (BSA/AML) and sanctions compliance programs.
Aviation maintenance services provider AAR Corp. will pay nearly $56 million to settle charges that it violated the Foreign Corrupt Practices Act when it paid bribes to government officials in Nepal and South Africa.
