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Goldman Sachs Faces $1.8 Million Fine for Trade Reporting Failures

By Jessica H. Antoniades, Esq.  of Shustak Reynolds & Partners, P.C. posted on Friday, July 31, 2015.

This week, the Financial Industry Regulatory Authority (FINRA) announced it has fined Goldman Sachs Execution & Clearing, L.P. $1.8 million for violations relating to trade reporting, failing to submit accurate trade reports and related supervisory failures.  According to FINRA, some of these violations occurred over a period of more than eight years, from July 2006 to March of 2015.  During this time, FINRA alleges Goldman Sachs reported inaccurate or incomplete trading data to FINRA’s Order Audit Trail System (OATS), which is used to record information relating to trades.

Executive Vice President of FINRA Market Regulation Thomas Gira has said “OATS data is integral to FINRA's automated market surveillance program to detect manipulative activity and other potential violations of FINRA rules and federal securities laws. It is critical that firms have the necessary systems and supervision in place to ensure compliance with their OATS and trade reporting obligations."  Goldman Sachs failed to have such systems in place to prevent its reporting problems, resulting in a hefty fine.

Goldman Sachs neither admitted nor denied FINRA’s charges, but it consented to the entry of FINRA's findings.

Shustak Reynolds & Partners, P.C.’s New York, San Francisco, Irvine and San Diego securities, FINRA and SEC attorneys handle a wide range of securities and FINRA related issues and have substantial expertise and experience in the securities and brokerage business.  Contact us today for a confidential analysis of your situation.

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