The Financial Industry Regulatory Authority (FINRA) fined Goldman Sachs $512,500 for allegedly failing to properly surveil certain types of securities for potential manipulative trading activity for more than a decade.
In its decision notice published Tuesday, FINRA said the firm did not include warrants, rights, units, and certain over-the-counter (OTC) equity securities in nine automated surveillance reports from February 2009 to April 2023. Securities were excluded from the reports for two to 12-plus years, the self-regulatory organization said. Among the surveillance reports that excluded these securities were reports on wash trading and marking the open and close of trades, per the notice.
