SG Americas to Pay $3.1 Million to Settle SEC charges

SEC Reportedly Sanctions SG Americas for Deficient Blue Sheet Data

According to a press announcement on June 24, 2020, the Securities and Exchange Commission settled charges against broker-dealer SG Americas Securities LLC for allegedly failing to provide complete and accurate securities trading information known as “blue sheet data.”  

The broker-dealer reportedly agreed to pay a $1.55 million civil penalty to resolve the SEC’s charges and separately agreed to pay $1.55 million to the Financial Industry Regulatory Authority (FINRA) to resolve parallel charges, according to the press announcement.

SG Americas purportedly made numerous deficient blue sheet submissions containing missing or inaccurate data, largely due to undetected coding errors over a period of five years, according to the SEC. The regulator charges SG Americas with submitting missing or incorrect data for approximately 27.6 million transactions and reportedly had inadequate processes designed to validate the accuracy of its submissions. 

Broker-dealers are required to provide trade data, so that the regulator can keep an eye out for insider trading and other fraudulent activity.

The SEC’s order reportedly finds that SG Americas willfully violated the broker-dealer books and records and reporting provisions of the federal securities laws. The firm admitted the findings in the SEC’s cease and desist order and agreed to be censured and to pay a $1.55 million penalty. The SEC’s order also finds that SG Americas engaged in remedial efforts to address the cause of its deficient submissions, including retaining an outside consultant and adopting new policies and procedures.

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