Lime Brokerage LLC, a registered broker-dealer, agreed to pay a fine of US $US $625,000 to resolve allegations by the Financial Industry Regulatory Authority and multiple securities exchanges that from September 1, 2012, through August 3, 2016, it failed to maintain a supervisory system and written supervisory procedures “reasonably designed” to detect and respond to potential manipulative trading by its direct market access customers. According to FINRA, beginning in December 2014 thorough the end of the relevant period, Lime employed only one individual to manually review its surveillance system’s alerts, but never provided the analyst “with any written guidance or explanations of the factors to consider reviewing the alerts and determining alert categories or dispositions.” Moreover, during the relevant time, the firm failed to respond to red flags of potential manipulative trading, including spoofing and layering, said FINRA.
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FINRA Sanctions Member for Allegedly Not Detecting Potentially Manipulative Transactions
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