Cboe Exchange Fines Susquehanna Securities for Rule Violations

Cboe Exchange fines Susquehanna Securities $12,000 for failing to report 24 transactions within the required 90 seconds and not maintaining proper supervisory procedures, as per Exchange Rules 6.1 and 8.16.

Key Points:

• Cboe Exchange fined Susquehanna Securities, LLC $12,000 for failing to report 24 transactions executed on the floor within 90 seconds, violating Exchange Rule 6.1.
• The firm also breached Exchange Rule 8.16 by not establishing adequate supervisory procedures or systems to ensure timely transaction reporting compliance.

The Cboe Exchange has fined Susquehanna Securities, LLC, $12,000 for alleged violations of exchange rules. The penalty comes after the firm failed to report 24 transactions executed on the trading floor within 90 seconds, as stipulated by Exchange Rule 6.1.

The infractions occurred during the Review Period, including December 2023, when Susquehanna Securities did not adhere to the timeliness requirements for transaction reporting. Additionally, the Exchange found that the firm failed to maintain and enforce written supervisory procedures (WSPs) and a supervisory system designed to ensure compliance with these regulations.

Cboe Exchange Fines Susquehanna Securities for Rule Violations

Exchange Rule 6.1 mandates that firms report transactions executed on the floor to the Exchange within 90 seconds. Susquehanna Securities compounded its lapse in adhering to this rule by failing to establish adequate procedures and a review process for monitoring compliance with the requirement.

The Cboe Exchange also identified a violation of Exchange Rule 8.16, as the firm lacked an adequately designed system to prevent and detect violations related to the timely reporting of transactions.

The Cboe Exchange’s action highlights the critical importance of adherence to regulatory standards and the need for firms to have adequate compliance systems. The Exchange’s decision to impose a fine and censure against Susquehanna Securities reminds stringent requirements that govern trading activities and the necessity for firms to uphold these standards rigorously.

In response to the findings, Susquehanna Securities has agreed to pay the $12,000 fine and accept the censure. The settlement reflects the firm’s commitment to addressing the identified issues and improving its compliance practices. The Cboe Exchange continues to emphasize its role in maintaining a fair and orderly market through rigorous enforcement of its rules and regulations.

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