The Financial Industry Regulatory Authority (FINRA) has fined Susquehanna Financial Group $100,000 as part of a settlement over systemic TRACE reporting deficiencies.

Between February 2021 and May 2023, Susquehanna failed to include the required “No Remuneration” (NR) indicator on approximately 74,000 transactions involving TRACE-eligible securities. This violated FINRA Rule 6730(d), which governs transaction reporting to the Trade Reporting and Compliance Engine (TRACE).

Supervision System Lapses

Beyond the reporting errors, FINRA also found that Susquehanna lacked a reasonable supervisory system, including written supervisory procedures (WSPs), to ensure compliance with reporting rules-violating FINRA Rules 3110 and 2010.

The firm agreed to the fine and a formal censure, without admitting or denying the findings.

The Compliance Takeaway

Susquehanna is one of the most respected proprietary trading and market-making firms in the U.S., with a long-standing FINRA membership since 1994. The case underlines a critical point: reporting errors-even unintentional-can carry real regulatory consequences, particularly in a time when transparency and traceability are under the microscope.

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Stay tuned.  PropInsider continues to track enforcement actions that shape compliance standards for prop firms and trading desks globally.-