Natixis Securities Americas LLC (CRD #1101, New York, New York)

March 22, 2022 – An AWC was issued in which the firm was censured and fined $400,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to report short interest positions. The findings stated that the firm set up trading accounts for its parent company, however the firm’s legacy systems were not updated to capture the accounts in its short interest reports. As a result, the firm did not report any short interest positions in the accounts over more than six years. Subsequently, the firm implemented a technology solution to include all relevant accounts for short interest reporting. The findings also stated that the firm failed to establish and maintain a supervisory system, including written procedures, reasonably designed to achieve compliance with short interest reporting requirements. The firm’s supervisory system and written procedures were solely operational. The firm’s procedures listed the steps personnel were to follow to transmit the short interest report every two weeks but required no supervisory review to determine the accuracy of the reports. As a result, the firm failed to detect the unreported positions until the issue was identified during a compliance review by an outside consultant. Ultimately, the firm implemented a supervisory review and related written procedures outlining the steps supervisors are required to take to review the accuracy of the firm’s short interest reports. (FINRA Case #2019063203501)