Stifel, Nicolaus & Co. and BMO Capital Markets have settled charges with the Securities and Exchange Commission, which claims the firms provided incomplete and inaccurate securities trading data. Stifel and BMO will pay $2.7 million and $1.95 million, respectively, in penalties.
The SEC uses so-called blue sheet data to investigate insider trading and other fraudulent activity.
According to the claim, Stifel failed to report on 9.8 million transactions and gave inaccurate information for about 1.4 million transactions. BMO was missing data or provided incorrect data for about 5.4 million transactions.
The two broker/dealers also failed to have the necessary processes in place to ensure the accuracy of their data.
“The SEC's orders found that each firm has engaged in remedial efforts to address the causes for its deficient submissions, including the retention of an outside consultant and the adoption of new policies and procedures for processing blue sheet requests,” the SEC said in a statement.