State Street Global Markets fined for electronic record-keeping violations
The Financial Industry Regulatory Authority Inc. has censured State Street Global Markets and fined it $1.5 million for failing to maintain electronic brokerage records in a non-erasable and non-rewritable format, known as WORM, as required by regulation.
In a letter of acceptance, waiver and consent, FINRA said that from Nov. 4, 2011 to April 21, 2017, SSGM failed to maintain in WORM format approximately 131.5 million records of orders placed by institutional clients. WORM, which stands for “write once, read many,” is intended to prevent the alteration or destruction of records stored electronically, FINRA said.
The regulator also said that State Street Global Markets failed to keep a duplicate copy of the electronic record, as required by regulation.
From March 2005 to April 2007, SSGM failed to capture, maintain and preserve all business-related instant messages sent and received and by its registered representatives. For its actions, the firm consented to a censure and a fine of $100,000 in April 2007.
State Street Global Markets, LLC operates as a brokerage firm. The Company offers research, trading, securities lending, and portfolio strategies to the owners and managers of institutional assets. State Street Global Markets serves clients in the United States.
The foregoing information, which is publicly available on FINRA’s website, has been provided by The White Law Group.
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