In the Matter of Alpaca Securities LLC

Alpaca Securities LLC allegedly failed to timely report approximately 1.87 million transactions to the FINRA/Nasdaq Trade Reporting Facility (FNTRF) due to performance issues and capacity constraints in its trade reporting systems. Its trade reporting systems reportedly lacked sufficient processing capacity to handle spikes in trade volume. The firm also appears to have submitted over 2 million inaccurate trade reports to the FNTRF and the Over-the-Counter Reporting Facility (ORF), which included inaccurate execution quantities for over 6,700 transactions or omitted the required prior reference price modifier and corresponding prior reference time for approximately 2.2 million transactions. Additionally, Alpaca Securities LLC allegedly failed to establish and maintain a supervisory system, including WSPs, reasonably designed to achieve compliance with FINRA’s trade reporting rules.

Summary generated from official Financial Industry Regulatory Authority press release