Instinet, a brokerage firm subsidiary of Nomura Group, agreed to pay $3.8 million as part of a settlement with the Financial Industry Regulatory Authority (FINRA) regarding “tens of billions” of inaccurate or late reports filed to the consolidated audit trail (CAT) central repository.

Obligations for large industry members that originated or received an order involving national market system or over-the-counter equity securities to report related data to the CAT central repository were put in place in June 2020. Instinet did not meet that compliance deadline, causing it to late report billions of events and lending to more than 150 other types of reporting errors, according to FINRA’s disciplinary action published Wednesday.

In early June 2020, Instinet notified FINRA it anticipated it would experience CAT reporting issues, according to the self-regulatory organization. The firm had retained a third party to act as its CAT reporting agent but failed in the establishment of its technical specifications for its order data, thus hindering the third party’s ability to convert the data.