Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

FINRA Fines UBS and Barclays Capital Over Trading Violations

Posted on October 25th, 2022 at 1:59 PM
FINRA Fines UBS and Barclays Capital Over Trading Violations

From the Desk of Jim Eccleston at ÍøÆØ³Ô¹Ï.

The Financial Industry Regulatory Authority (FINRA) has fined UBS Securities $2.5 million for violating a rule regarding a common problem known as a “failure to deliver”, which could lead to the potential sale of securities that an investor does not own or has not borrowed.

The rule, known as Regulation SHO, requires advisory firms to close out failure-to-deliver positions resulting from short sales in equity securities by borrowing or purchasing the securities by the beginning of regular trading hours the day after the settlement date. When an advisory firm fails to close out a failure-to-deliver, the rule restricts the firm from receiving additional short sale orders in the security without first arranging to borrow the securities, which is often referred to as the “penalty box”. UBS failed to close out nearly 5,300 failure-to-deliver positions between 2009 and 2018, according to FINRA. FINRA additionally alleged that the firm executed at least 73,000 short sales with an unsatisfied close-out requirement without first arranging to borrow the shares.

FINRA also fined Barclays Capital $2 million over the firm’s failure to ensure that it completed its clients’ trading orders at the lowest prices. While Barclays routes client trading order via its own alternative trading system, known as LX, FINRA alleged that Barclays failed to check whether it could have obtained lower prices on other trading systems between 2014 and 2019. FINRA additionally alleged that Barclays failed to maintain written procedures that would have prevented violations of FINRA’s best execution rule, which requires firms to seek the best prices for client trading orders.

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

1778171646 Law
May 7, 2026
FINRA Bars Former Raymond James Broker for Refusing Testimony in Unauthorized Trading Probe

A former registered representative with Raymond James has been barred from the securities industry after refusing to cooperate with a Financial Industry Regulatory Authority (FINRA) investigation into alleged unauthorized trading activity.

1778084309 Law
May 6, 2026
FINRA Outlines Key Rulemaking Priorities and Recent Developments in Quarterly Agenda

The Financial Industry Regulatory Authority (FINRA) recently released its Quarterly Regulatory Policy Agenda, offering a detailed view of its rulemaking priorities, pending proposals, and recently approved regulatory changes.

1778000603 Law
May 5, 2026
Commonwealth Financial Network Resolves SEC Conflict of Interest Case

Commonwealth Financial Network has agreed to pay $5 million to resolve a long-standing conflict of interest case brought by the Securities and Exchange Commission, according to reporting by ThinkAdvisor.