Firstrade Securities of Flushing, NY, agreed to settle FINRA charges that it failed to comply with SEC "Books and Records" rules, as they pertained to electronic storage media - SEC Rules 17a-3 and 17a-4.  Among FINRA's findings, Firstrade Securities allegedly failed to:

• have available, for examination by FINRA staff, facilities for immediate, easily readable projection or production of micrographic media or electronic storage media images, and for producing easily readable images - as required by SEC Rule 17a-4(f)(3)(i).
• notify FINRA prior to employing electronic storage media for maintaining certain records in electronic formats. 
• have in place an audit system providing for accountability re: inputting of records required to be maintained and preserved under SEC Rules 17a-3 and 17a-4 to electronic storage media;  results of such an audit system should have been available for examination by FINRA staff. 
• provide the required access to allow a 3rd-party vendor to download information from its electronic storage media and file the required undertakings with the proper authorities, including FINRA. 

Firstrade Securities was fined $20,000.  This is FINRA Case #2009016640101.   [Disciplinary Action for May 2011]