The Financial Industry Regulatory Authority (FINRA) is fining Goldman Sachs $1.8 million for failing to reports “substantial” details about its dark pools.
The Goldman clearing and execution unit neglected to send a number of order details to FINRA over seven years, reports Reuters. Dark pools are alternative trading systems that allow investors to trade anonymously, and posts trading data after the fact. The broker-run system is supposed to cut down on information leaks about trade orders.
FINRA also cited Goldman for sending inaccurate order data for more than eight years between 2006 and 2014, and for lacking the controls to prevent violations. Between 2011 and 2013, Goldman failed to report details of 6.1% , or 6.3 billion, of its “order events” to FINRA.
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