- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-08-29T18:23:00
A Chicago-based broker-dealer agreed to pay a $1.5 million penalty as part of a settlement with the Securities and Exchange Commission (SEC) for allegedly failing to file nearly 500 suspicious activity reports (SARs) largely related to microcap or penny stock securities transactions.
Archipelago Trading Services operates an over-the-counter (OTC) alternative trading system (ATS) for equity securities used by broker-dealers to execute trades. The SEC faulted the firm for not properly supervising high-risk securities transactions it executed daily over an eight-year span, the agency said in a press release Tuesday.
Beginning in August 2012, Archipelago operated its ATS, known as Global OTC, without a reasonably designed anti-money laundering (AML) surveillance program for its transactions, according to the SEC’s order. It wasn’t until September 2020 that the firm established proper AML policies and procedures for tracking transactions.
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New York-based broker-dealer OTC Link will pay a $1.2 million fine to settle charges levied by the Securities and Exchange Commission over allegedly failing to implement a system to monitor and report potential suspicious activities on its platforms.
Intercontinental Exchange and nine affiliates agreed to pay $10 million for allegedly failing to inform the Securities and Exchange Commission of a cyber intrusion as required by Regulation Systems Compliance and Integrity.
New York-based broker-dealer Maxim Group agreed to pay an $800,000 fine in settling with the Securities and Exchange Commission regarding the firm’s alleged failures to file required suspicious activity reports and properly execute certain short sales.
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The Securities and Exchange Commission charged bankrupt fashion retailer Express with failing to disclose nearly $1 million in perks to a former chief executive, but did not levy a financial penalty thanks to its cooperation, the SEC said.
