Nomura Securities International, Inc. He agreed to pay fine as part of a settlement with Nasdaq PhLX LLC.
During the April 2019 to October 2022, Nomura failed to accurately record the receipt of receipt, transmission or execution times and/or the correct exchange in which the trader had the order.
During this time, the company maintained inaccurate marking time or information for about 11,328 orders of manual options executed in PhLX and other exchanges.
Consequently, Nomura violated the law on the exchange of Article 17 (a) and the 17A-3 exchange law and the 760 PHLX rule (for behavior before February 3 2020) and the options of the PHLX 6E rule, Section 1 (for behavior on 3 February 2020).
From January 2019 to August 2024, Nomura failed to establish, maintain and enforce supervisory systems and procedures, including written supervisory procedures, which were reasonably designed to achieve compliance with the obligations of files on the laws on federal mobile and federal values.
The company’s supervisory systems and procedures have failed to provide reasonable recognition, escalation and restoration of time marking and executing information information information in the company’s manual choices Memorandum.
While the company’s supervisory system for manual orders of the orders required designated managers to review the accuracy of the time marking and the execution of exchange information on the company’s memorandums, the revisions were too limited to determine the full extent of the business.
The company also failed to provide reasonable guidance to defined supervisory principles on how they would take further action when they knew the traders who introduced inaccurate information on manual orders.
In practice, even when the business staff found inaccuracies in the business memorandum, the company’s staff failed to scale the issues reasonably and the company failed to correct the inaccuracies.
Consequently, Nomura violated the PHLX 748 (H) rule (for behavior before February 3, 2020) and the PHLX 9 General Regulation, Section 20 (for behavior after February 3, 2020) and the PHLX 707 rule (for behavior before January 3, 2020) after January 22, 2021).
Nomura agreed with a censure and a fine of $ 275,000, of which $ 86,000 must be paid to Nasdaq PhLX. The balance of the fine must be paid to Cboe Exchange, Inc., Nyse American LLC and NYSE ARCA, Inc.