{"id":5884,"date":"2015-11-21T00:00:00","date_gmt":"2015-11-21T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/11\/finra_cases_deutsche_bank_fine"},"modified":"2022-05-17T13:50:19","modified_gmt":"2022-05-17T18:50:19","slug":"finra-cases-deutsche-bank-fine","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/finra-cases-deutsche-bank-fine\/","title":{"rendered":"FINRA Cases: Deutsche Bank Fined $1.4M for Reg SHO and Short Interest Reporting Violations, Scottrade to Pay $2.6M for Email and Electronic Record Failures, and Cantone Capital Faces Fraud Charges"},"content":{"rendered":"

FINRA Fines Deutsche Bank Securities $1.4M<\/strong><\/h2>\n

The Financial Industry Regulatory Authority is fining Deutsche Bank Securities Inc. (DB) $1.4M for Regulation SHO violations, as well as for supervisory failures. According to the self-regulatory organization, for more than 10 years, the firm improperly included securities positions of a broker-dealer affiliate who isn\u2019t from the US in a number of aggregation units. Deutsche Bank purportedly did this when trying to figure out the net position of each unit.<\/p>\n

Under Reg SHO, firms can use an aggregation unit to track positions in security from certain trading operations or trading desks separate from other positions. However, to determine the aggregation unit\u2019s net positions, firms are not allowed to use the securities positions of a non-US brokerage firm affiliate.<\/p>\n

Also, FINRA mandates that firms\u2014barring specific exemptions\u2014regularly report total short positions in customer and proprietary firm accounts in equity securities. The positions have to be reported not on a net basis. Instead, they should be based on a gross basis. The SRO said that for more than eight years, Deutsche Bank reported net positions in its financial aggregation accounts, submitting those as its short interest position.<\/p>\n

The SRO said that Deutsche Bank\u2019s supervisory system as it relates to short interest reporting and its aggregation unit structure was not designed in a reasonable enough manner to identify and stop these rule violations. By settling, Deutsche Bank is not denying or admitting to the violation charges.<\/p>\n

Scottrade Ordered to Pay $2.6M Fine for Electronic Records, Email Retention Failures<\/strong><\/h2>\n

Scottrade, Inc. must pay a $2.6M fine to settle FINRA allegations accusing the firm of not keeping a lot of securities-related electronic records in the format mandated, which is known as WORM. Scottrade is also accused of not keeping specific categories in outgoing email and failing to have a supervisory system in place that could fulfill compliance related to certain FINRA and Securities and Exchange Commission rules regarding books and records.<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

FINRA Fines Deutsche Bank Securities $1.4M The Financial Industry Regulatory Authority is fining Deutsche Bank Securities Inc. (DB) $1.4M for Regulation SHO violations, as well as for supervisory failures. According to the self-regulatory organization, for more than 10 years, the firm improperly included securities positions of a broker-dealer affiliate who isn\u2019t from the US in […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3818,3752],"tags":[],"class_list":["post-5884","post","type-post","status-publish","format-standard","hentry","category-deutsche-bank","category-financial-firms"],"yoast_head":"\nDeutsche Bank Fined $1.4M For Reg SHO And Short Interest Reporting Violations — Investor Lawyers Blog<\/title>\n<meta name=\"description\" content=\"FINRA is fining Deutsche Bank Securities Inc. 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