By Staff Writer
BofA Securities has agreed to a settlement with the Financial Industry Regulatory Authority (FINRA) over violations related to Regulation National Market System (NMS), covering a period from September 2014 to July 2023. The settlement was accepted without the firm admitting or denying the findings.
According to FINRA, the firm failed to implement written policies that were “reasonably designed to prevent trade-throughs”—a key protection under Regulation NMS meant to ensure investors receive the best available price when trading. Additionally, the regulator said BofA Securities did not properly ensure its use of intermarket sweep orders (ISOs) complied with NMS rules.
FINRA also found deficiencies in the firm’s supervisory systems, citing violations under NASD Rule 3010 and FINRA Rule 3110, which require firms to maintain adequate oversight procedures.
This is not the first time BofA Securities has faced scrutiny over similar issues. In 2018, the firm was fined $115,000 by FINRA and another $135,000 collectively by the Cboe BYX and BZX exchanges for related violations.
No additional action will be taken on the same findings as part of this latest settlement.
