Tradestation Securities, Inc. He agreed to pay a fine of $ 85,000 as part of a settlement with the Financial Industry Regulatory Authority (Finra).
From July to September 2022, mobile values were distributed communications on encryption assets and the Crypto Asset -related services offered by its subsidiary. The subsidiary demanded customers who wanted to buy cryptographic assets to maintain brokerage accounts with tradestation titles. Tradestation Securities’ communications on encryption assets and Crypto Asset -related services included websites, emails and content posted on social media platforms.
During the relative period, traditional distribution titles distribute several communications that violated one or more of the content standards in the Finra Rule 2210. Most of the violated communications failed to reveal obviously that encryption assets were not offered by traditional security, but were offered by a subsidiary that was not aimed at mission.
Some content on the business website describing the services associated with Crypto Asset do not clearly state which entity offered cryptographic assets.
For example, a page on the trade website contained the statement: “Tradestation provides award -winning trading and analysis platforms and sell ~ clearance of interviews online for stocks, ETFS, Equity and Options, basic and financial contracts, cryptocurrencies ”. This statement failed to distinguish between the products and services offered by the business and those offered by its subsidiary.
Similarly, the business posted a video on a social media platform that included the statement: “Tracking is a high quality platform and no problems that allow you to buy, sell and exchange many types of stocks, ETFs and several cryptocurrencies.” This announcement could potentially be confused with retail investors on which entity offered the services and which regulations and protections are implemented.
In addition, some of the violated communications discussed cryptographic assets offered through the subsidiary without a balanced description of the relevant investment risks in these assets.
The subsidiary of TRADISTATION SECURities has ceased to provide cryptographic assets after the relative period and therefore, traditional surveillance titles cease to distribute retail communications on encryption assets offered by its subsidiary.
With the distribution of retail communications described above, mobile values violated the Finra 2210 (d) (L) (A), 2210 (d) (L) (b), 2210 (d) (3) and 2010 rules.
In addition to the fine of $ 85,000, the company agreed to a accusation.