A broker-dealer settled FINRA charges for executing customer transactions in a municipal security in an amount lower than the issue's minimum denomination. The broker dealer was charged with violating MSRB Rule G-15 ("Confirmation, Clearance, Settlement and Other Uniform Practice Requirements with Respect to Transactions with Customers").
According to the Letter of Acceptance, Waiver and Consent, the broker-dealer violated MSRB Rule G-15 by executing 105 customer transactions in a municipal security in an amount lower than the minimum denomination of the issue. Additionally, the broker-dealer allegedly violated MSRB Rule G-47 by failing to disclose to customers in 20 instances (i) the violation of MSRB Rule G-15 and (ii) that the position's liquidity may have been adversely affected.
Without admitting to or denying the allegations, the broker-dealer agreed to (i) a censure and (ii) a total fine of $150,000 ($130,000 for violating MSRB Rule G-15 and $20,000 for violating MSRB Rule G-47).
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