FINRA Fines BNY Mellon Capital Markets Over Municipal Trade Reporting Failures

BNY Mellon Capital Markets, LLC has agreed to pay a $60,000 fine and accept a censure to settle enforcement action brought by the Financial Industry Regulatory Authority (FINRA), according to information released by FX News Group.

FINRA found that between April 2022 and May 2024, the firm improperly reported around 1,725 transactions to the Municipal Securities Rulemaking Board’s (MSRB) Real Time Transaction Reporting System. The reports failed to include the required special condition indicator for transactions involving new issue municipal securities, in breach of MSRB Rule G-14.

The regulator also determined that during the same period, BNY Mellon Capital Markets did not establish or maintain an adequate supervisory system, including written supervisory procedures, to ensure compliance with its transaction reporting obligations. This constituted a violation of MSRB Rule G-27.

In addition to the monetary penalty, the firm agreed to a formal censure. There was no indication that customers suffered financial harm as a result of the reporting deficiencies.

BNY Mellon Capital Markets has been a FINRA member since 1986 and an MSRB registrant since 1995. Headquartered in New York, the firm operates 11 branch offices and employs approximately 190 registered individuals.