The Financial Industry Regulatory Authority brought charges against one member broker-dealer for its alleged failure to comply with requirements related to the protection of customers assets, while settling charges against two other broker-dealers for not complying, respectively, with certain of their customer confirmation and best execution obligations. In one matter involving Wedbush Securities Inc., FINRA alleged that the broker-dealer failed on multiple occasions from June 2009 through June 2012 to comply with requirements under applicable law and SEC rule to promptly obtain and maintain physical possession or control of fully-paid-for securities and excess margin securities carried for its customers (its so-called “segregation requirement”), and to set aside on at least a weekly basis in a special account for the benefit of its customers – its so-called “reserve account” – any amounts it owes customers in excess of amounts its customers owe it. FINRA claimed that Wedbush created and/or increased deficits in its segregation requirement by improperly delivering stock shares or returning stock shares borrowed for stock loan transactions when it did not have sufficient excess shares above the firm’s segregation requirement. The firm’s reserve account deficiencies resulted from calculation errors, said FINRA. FINRA alleged that Wedbush failed to implement and maintain an adequate supervisory system to avoid the purported violations, despite being put on notice as a result of FINRA exams as early as 2004 that it failed adequately to protect customer assets. The firm also received a Letter of Caution from FINRA on the subject in 2008. Separately, FINRA brought and settled charges against UBS Securities, LLC for the firm’s alleged failure on occasion to disclose certain required information on trade confirmations to institutional customers related to their execution of trades through foreign affiliates. FINRA claimed that, on more than 15,500 occasions from April 2012 through March 2015, the firm disclosed to such customers that it acted in agency capacity instead of on a riskless principal basis in connection with certain trades because of a system configuration error. UBS agreed to pay a fine of US $110,000 to resolve this matter. FINRA also resolved a disciplinary action against E*Trade Securities for its alleged failure from July 2011 through June 2012 to conduct adequate “regular and rigorous reviews” regarding the quality of the execution of its customer orders as required by FINRA. According to FINRA, during the relevant time, the firm did not adequately consider the impact of its internalization model through which it routed the majority of its market and marketable limit orders to G1 Execution Services, an affiliated market maker; relied on execution quality statistics that were based on purportedly flawed data; and relied too much on comparisons of the firm’s execution quality with industry and customer averages, as opposed to actual execution quality provided by the market centers where the firm routed orders. E*Trade agreed to pay US $900,000 to resolve this matter.