← Broker database 2025-05-09
Siebert Williams Shank Fined for Municipal Securities Trade Reporting Failures
According to FINRA, Siebert Williams Shank & Co., LLC was censured and fined $55,000 for failing to accurately report municipal securities transactions to the MSRB's Real-Time Transaction Reporting System (RTRS).
The New York firm reported incorrect trade execution times due to a default setting in its order management system. Instead of reporting when trades were actually executed, the firm reported the later time at which personnel confirmed customer orders. This also caused trades to be reported late.
Additionally, the firm failed to report certain step-out trades to the RTRS entirely. When these trades were cancelled and re-booked to a master account at the clearing broker, the initial trade reports were also cancelled, but the firm did not submit corrected reports.
The firm's written supervisory procedures did not define "time of trade" and failed to train operations personnel on how RTRS procedures and MSRB guidance define this term. The procedures also failed to address what steps supervisors should take to review accuracy of trade time reporting or how to handle errors identified in MSRB or clearing firm reports.
Accurate trade reporting is essential for market transparency. The RTRS provides real-time information about municipal securities transactions to the public, helping investors understand current market prices. When firms report inaccurate times or fail to report trades altogether, it undermines the transparency that helps investors make informed decisions.
The firm has since corrected its order entry system settings, provided additional training to personnel, and updated its supervisory procedures.
For municipal bond investors, accurate trade reporting helps ensure you can see what prices others are paying for similar bonds. This information is valuable when evaluating whether the price you're offered is fair.