Credit Suisse Securities USA Pays $900,000 to Settle with FINRA for Deficient TRACE Reports

Credit Suisse Securities (USA) LLC (Credit Suisse) has agreed to pay the monetary sanction of $900,000 and receive a censure to settle with the Financial Industry Regulatory Authority (FINRA).

From November 2015 through at least March 2023, Credit Suisse reported to the Trade Reporting and Compliance Engine (TRACE) approximately 9,000 late trades, primarily in securitized products, and hundreds of thousands of inaccurate TRACE reports. The firm's late and inaccurate TRACE reports violated FINRA Rules 6730 and 2010. From July 2016 through June 2021, Credit Suisse also failed to timely provide notice to FINRA for approximately 190 new issue offerings in TRACE-reportable securities in violation of FINRA Rules 6760 and 2010.

Furthermore, Credit Suisse's supervisory system for reviewing the timeliness and accuracy of its TRACE reporting was not reasonable. As a result, the firm violated FINRA Rules 3110 and 2010.

As earlier reported, Credit Suisse will also face huge penalties​ from US Federal Reserve and the UK's Prudential Regulation Authority next month.