What could be worse than getting an AWC from FINRA?  How about getting 3?  That was the fate that befell Chicago, IL-based New Edge USA, LLC, a member of FINRA since March 1996. The 3 AWC covered 9 reviews by FINRA Market Regulation for securities transactions in 2007, 2008, and 42 days in 2009. It's all quite puzzling because the FINRA reviews came in waves, regularly reviewing OATS and trade reporting.  Each succeeding review seemed to generate significant - if not monstrously large - numbers of errors of failed reports.   Nor did we see any sort of explanation from FINRA - we apologize if we missed one - and that includes three AWC's and separate disciplinary summaries for December 2011. Nevertheless, Newedge lives on, no doubt being examined as write this story.  Apparently there's a semi-logical answer -  we just haven't got it - just yet! FINRA AWC #2008014570301. Newedge USA, LLC agreed to a $47.5K fine - $25K for short interest reporting, $5K for supervision, $17.5K for OATS violations.  Newedge also must revise its WSPs for short interest reporting.  charges that the firm's supervisory system was deficient in this area.  This AWC covers the following 3 reviews by FINRA's Department of Market Regulation conducted 3 separate reviews that tested:

• Short interest reporting compliance for period, 6/13/08 through 7/31/08.
• OATS reporting compliance for period, 1/1/07 through 7/15/08.
• OATS reporting compliance for period, 10/1/08 through 12/31/08.
• for detailed findings, click on:   AWC #2008014507301.

FINRA AWC #2008012333101. Newedge agreed to a $45K fine - $30K for OATS violations, $10K for trade reporting violations, $5 for supervision.  Newedge again had to revise its WSPs for trade reporting for transactions executed and reported by way of a give-up agreement. This AWC covers the following 3 reviews by FINRA's Department of Market Regulation conducted 5 separate reviews that tested:

• OATS reporting compliance for period, 7/1/07 through 9/30/07.
• OATS reporting compliance for period, 5/1/07 through 8/31/07.
• OATS reporting compliance for period, 1/1/07 through 4/30/08.
• Trade reporting compliance for period 2/1/07 through 12/31/08.
• Trade reporting compliance for period 5/1/08 through 8/31/08.
• for detailed findings, click on:   AWC #2008012333101.

FINRA AWC #2010021306801. Newedge agreed to a $10K fine and was based on a single review by Market Regulation on OATS Reporting.   This being the shortest and simplest, we can tell you that, for the review period, 5/1/09 through 8/31/09, FINRA found that Newedge:

• failed to timely report to OATS 2,132,559 ROEs over 42 business days;
• transmitted to OATS 96 Route or Combined Order/Route Reports that the OATS system was unable to link to the related order routed to Nasdaq due to inaccurate, incomplete or improperly formatted data; and,
• transmitted to OATS 56 Route or Combined Order/Route Reports that the OATS system was unable to link to the corresponding new order transmitted by the destination member firm due to inaccurate, incomplete or improperly formatted data.

[FINRA Disciplinary Actions for December 2011]