Credit Suisse blue sheet submissions for fixed income did not include certain execution level information for approximately 2,460 trades.
The U.S. Securities and Exchange Commission (SEC) announced that Credit Suisse Securities (USA) LLC has agreed to pay charges for providing the SEC with incomplete and inaccurate corporate action information related to securities transactions at fixed income for almost four years.
The regulator explains that brokers are required to provide information about securities transactions – called “blue sheet data” – which the SEC uses to carry out its regulatory and enforcement obligations, including investigations of crimes. insider trading and other fraudulent activities.
According to SEC order, Credit Suisse fixed income blue sheet submissions did not include certain level of execution information, such as order execution times, for about 2,460 trades . Credit Suisse did not have reasonable pre-submission checks to validate that the information in its fixed income submissions was complete and accurate.
According to the order, Credit Suisse has initiated efforts to remedy the causes of its deficient submissions, including hiring an outside consultant and adopting new policies and procedures for handling blue sheet requests.
The SEC has concluded that Credit Suisse willfully violated the brokers’ books and records and the reporting provisions of Section 17(a)(1) of the Securities Exchange Act of 1934 and Rules 17a-4(j) and 17a-25 which derive therefrom.
The company admitted the findings of the SEC’s cease-and-desist order, agreed to be censured, and to pay a civil penalty of $600,000.
Credit Suisse was found liable by the SEC for similar behavior in a 2015 order.