Goldman Sachs Group has agreed to pay $1.8 million to resolve allegations by the Financial Industry Regulatory Authority that one of its units failed to accurately submit required trade reports.
FINRA rules require firms to transmit all applicable order information to its Order Audit Trail System in a complete and accurate manner. The independent regulator for U.S. securities firms found that Goldman Sachs Execution & Clearing failed to transmit a substantial number of order-related events to OATS for its Alternative Trading System for approximately seven years, and the firm transmitted inaccurate data for a large number of order-related events for more than eight years. Also, even though Goldman Sachs Execution & Clearing's ATS captured order event times in milliseconds, it failed to report order event timestamps in milliseconds for a 10-month period. The firm also submitted a large number of inaccurate, incomplete or improperly formatted trade reports that did not report execution timestamps in milliseconds for a three-month period.
During the period of review, Goldman Sachs Execution & Clearing did not have adequate systems and controls in place to detect and prevent the violations. Goldman Sachs neither admitted nor denied the charges when agreeing to the FINRA consent order.