Wednesday, December 2, 2015

Apex Clearing Fined For Violations of Regulation SHO

Apex Clearing was censured and fined $12,500. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that among other things, it had fail-to-deliver positions at a registered clearing agency in equity securities that resulted from long sales, and did not close the fail to deliver positions by purchasing or borrowing securities of like kind and quantity within the time frame prescribed by Rule 204(a)(1) of Regulation SHO. The findings stated that the firm had failed to deliver positions at a registered clearing agency in equity securities that resulted from sales of securities that the seller was deemed to own pursuant to §242.200 of Regulation SHO and intended to deliver once all restrictions on delivery had been removed, and did not close the fail-to-deliver positions by purchasing or borrowing securities of like kind and quantity within the time frame prescribed by Rule 204(a)(2) of Regulation SHO.

www.finra.org/sites/default/files/publication_file/November_2015_Disciplinary_Actions.pdf

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Mark Astarita is a New York securities lawyer who represents investors, brokers and firms in securities regulatory, enforcement and arbitration matters across the country. For a free consultation on markup questions, or any securities related question, call Mark at 212-509-6544 or email him at mja@sallahlaw.com