FCC Flash

Archipelago Trading Services Inc. (ATSI) has received a settlement fine of US$1.5 million from the United States Securities and Exchange Commission (SEC) for failing to file hundreds of suspicious activity reports over an eight-year period related to trades in over-the-counter securities.

Between August 2012 and September 2020, the SEC found that Archipelago, a unit of the trading technology company Intercontinental Exchange, failed to file at least 461 SARs on transactions using its alternative trading system, Global OTC, most of which involved trading in microcap or penny-stock securities.

In accordance with the SEC’s order, ATSI violated Section 17(a) of the Securities Exchange Act and Rule 17a-8. Without admitting or denying the SEC’s findings, ATSI agreed to a censure and a cease-and-desist order in addition to the $1.5 million penalty.