Susquehanna Fined by FINRA for Inaccurate Transaction Reporting

Susquehanna Financial Group has been censured and fined $100,000 by the Financial Industry Regulatory Authority (FINRA) for inaccurate transaction reporting and deficiencies in its supervisory system. The firm accepted FINRA's findings without admitting or denying the allegations.

FINRA's investigation found that Susquehanna inaccurately reported approximately 74,000 transactions between February 2021 and May 2023. Specifically, the firm failed to include the mandatory "No Remuneration" (NR) indicator in TRACE reports for transactions where no commission, mark-up, or mark-down was charged. FINRA stated in its letter of acceptance, waiver and consent note that "Susquehanna inaccurately reported transactions in TRACE-Eligible Securities without the required NR indicator." This omission is cited as impacting audit trails and regulatory surveillance. Susquehanna attributed the error to a transition to a new TRACE reporting system and reportedly corrected the issue after FINRA brought it to their attention.

Additionally, Susquehanna was found to have violated FINRA Rules 3110 and 2010 by not establishing or maintaining a supervisory system, including written procedures, specifically designed to ensure compliance with the NR indicator reporting requirement. FINRA added that the firm has since amended its procedures to include supervisory review for the accuracy of the NR indicator.