According to FINRA, Pershing LLC (CRD #7560), based in Jersey City, New Jersey, was censured and fined $150,000 for trade reporting failures. The firm consented to these sanctions without admitting or denying the findings. FINRA found that Pershing failed to properly report the Non-Transaction Based Compensation (NTBC) indicator for certain municipal securities transactions. The firm's electronic reporting system did not account for the fact that it did not accept compensation for transactions with two affiliates. As a result, the firm erroneously reported these affiliate transactions without the applicable NTBC indicator, which is required under MSRB Rule G-14(b). FINRA also found that Pershing failed to report the No Remuneration (NR) indicator to the Trade Reporting and Compliance Engine (TRACE) for certain transactions in TRACE-eligible securities. These transactions did not include a commission, mark-up, or mark-down, but the firm's reporting logic failed to account for affiliate transactions where no transaction-based compensation was charged. The NR indicator is required under FINRA Rule 6730(d) to accurately reflect the nature of the transaction. Additionally, FINRA found that the firm's supervisory system was not reasonably designed to ensure compliance with these reporting requirements. The firm lacked supervisory reviews and written procedures for verifying the accuracy of the NTBC indicator in municipal securities reports. Similarly, the firm's written procedures for TRACE reporting did not include any reviews related to the accurate reporting of the NR indicator. Pershing has since addressed these issues by implementing monthly reviews of randomly selected trades to confirm the accuracy of both the NTBC indicator for MSRB reports and the NR indicator for TRACE-eligible securities transactions. These review processes are now documented in the firm's written supervisory procedures. For investors, accurate trade reporting is fundamental to market transparency and fair pricing. When firms fail to properly report compensation indicators, it can obscure the true cost of transactions and make it more difficult for regulators and market participants to identify potential pricing issues. This case reinforces the importance of firms maintaining robust systems to ensure the accuracy of their trade reporting obligations.