Americas Securities to Pay $275,000 Fine for Reporting Violations

Key Takeaways

• $275,000 Fine: Americas Securities has agreed to pay a $275,000 fine and accept a censure for violations related to inaccurate trade reporting and supervisory failures.
• Inaccurate Reporting: Between 2017 and 2023, Americas Securities failed to include critical reporting indicators, including the “No Remuneration” (NR) and “Non-Member Affiliate – Principal Transaction” (NMAPT) indicators, on thousands of TRACE reports.
• System Failures: The inaccuracies were primarily due to coding errors in the firm’s trade reporting system, which went uncorrected until 2023.
• Supervisory Lapses: Americas Securities lacked an effective supervisory system to ensure compliance with TRACE reporting requirements, failing to address the issue until 2025.
• Corrective Measures: The firm updated its reporting systems and revised its supervisory procedures to prevent future errors and improve compliance.
• Cautionary Tale: The settlement serves as a reminder for firms to maintain robust reporting systems and proper oversight to avoid regulatory penalties.

Deep Dive

Americas Securities has reached a settlement with FINRA after admitting to multiple rule violations related to inaccurate trade reporting and supervisory failures. Under the terms of the settlement, the firm has agreed to pay a $275,000 fine and accept a censure.

From July 2017 to August 2023, Americas Securities reported a staggering 166,421 transactions inaccurately to FINRA’s Trade Reporting and Compliance Engine (TRACE), violating FINRA Rules 6730 and 2010. The issue stemmed from the firm’s failure to include the critical "No Remuneration" (NR) indicator for many multi-leg transactions in TRACE-eligible securities. The NR indicator is essential for providing accurate pricing information, as it highlights trades where no commission, mark-up, or mark-down was involved. This omission disrupted the regulatory audit trail, making it difficult for FINRA to detect potentially problematic transactions.

In addition to this, the firm also failed to include the "Non-Member Affiliate – Principal Transaction" (NMAPT) indicator on 40,674 transactions, further complicating the accuracy of its reporting. These transactions, involving trades between Americas Securities and a non-member affiliate, required the NMAPT indicator but did not include it due to a failure to update the reporting system when needed. This error, alongside the NR omission, violated multiple FINRA rules and reflected serious reporting deficiencies.

System Failures and Supervisory Lapses

The errors weren’t confined to simple coding mistakes. Americas Securities also fell short in ensuring proper supervision of its reporting practices. From 2017 to early 2025, the firm did not have an adequate supervisory system in place to review the accuracy of its TRACE reports, particularly with regard to the NR and NMAPT indicators, the firm’s execution capacity, or the identification of counterparties.

The absence of a robust supervisory framework during this period violated FINRA’s rules on maintaining a system to oversee regulatory compliance. Furthermore, Americas Securities' written supervisory procedures (WSPs) failed to address how TRACE reporting should be supervised, who was responsible for reviewing it, or how frequently reviews should be conducted. These lapses were a significant oversight in ensuring accurate trade reporting.

Actions Taken by Americas Securities

To its credit, Americas Securities responded to the findings by taking corrective measures. In 2023, the firm remediated the coding errors and updated its reporting system to prevent similar mistakes in the future. Additionally, in early 2025, Americas Securities revised its written supervisory procedures to address the identified gaps in its oversight and ensure better compliance moving forward.

While these actions show a commitment to resolving the issues, they serve as a stark reminder of how regulatory mistakes—particularly in reporting—can quickly escalate into a larger issue when adequate oversight is lacking.

A Step Toward Accountability

As part of the settlement, Americas Securities has agreed to pay the $275,000 fine and accept a censure. The firm has waived any right to claim financial inability to pay the fine, signaling its commitment to resolving the matter quickly. The fine will be due upon FINRA’s acceptance of the settlement.

This settlement brings the matter to a close, but it also raises important questions about how firms maintain their reporting systems and supervisory frameworks. The financial sector, particularly firms dealing with sensitive data like trade transactions, must have robust systems in place to ensure accurate reporting and compliance with regulatory standards.

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