The U.S. Financial Industry Regulatory Authority (FINRA) on Goldman Sachs (Goldman Sachs & Co..LLC fined for allegedly breaking rules。

Between February 2009 and mid-April 2023, Goldman failed to include warrants, rights, units and certain over-the-counter equity securities in nine oversight reports designed to identify potentially manipulative proprietary trading and client trading.。The period of exclusion of these securities ranges from approximately two years to more than 12 years.。

For example, a Goldman Sachs monitoring report designed to identify potential wash transactions excluded warrants for the period from October 2010 to March 2021 and excluded rights and units for the period from October 2010 to April 2022.。

In addition, Goldman's monitoring reports are designed to identify potential opening and closing marks, which exclude warrants, rights, units and certain over-the-counter equity securities from the February 2009 report until April 2018.。

Due to loopholes in its monitoring reports, Goldman Sachs is unable to conduct a reasonable supervisory review of trading activities in warrants, rights, units and certain over-the-counter equity securities to detect potential manipulation。From February 2009 to mid-April 2023, the nine affected reports could have identified about 5,000 alerts about potential manipulative trading activities in these securities (extrapolated from existing data)。

Goldman Sachs adds missing securities to monitoring reports based on FINRA's investigation, or through the company's adoption of new monitoring reports。Goldman Sachs completes remediation of all oversight reports by April 2023。

Goldman's regulatory system, including its written procedures, also does not require a review of its automated monitoring reports to ensure that they include all relevant securities transactions that are part of the company's business.。As a result, the company failed to identify nine monitoring reports on potentially manipulative transactions that did not include warrants, rights, units and certain over-the-counter equity securities.。

In February 2021, Goldman Sachs implemented a review to determine if any securities were inadvertently excluded from new or modified monitoring reports.。

Goldman Sachs violated NASD Rule 3010 and FINRA Rules 3110 and 2010 by not properly designing the oversight system.。

Goldman Sachs agreed to accept the reprimand and a $512,500 fine, of which $37,000 will be paid to FINRA and the remainder to Cboe BYX Exchange, Inc..Cboe EDGX Exchange, Inc., Investors Exchange LLC, The Nasdaq Stock Market LLC, Nasdaq BX, Inc., Nasdaq Phlx LLC, The New York Stock Exchange LLC, NYSE American LLC, NYSE Arca, Inc.NYSE Chicago,Inc.and NYSE National, Inc.