Securities Lawyers Blog
A concentrated investment portfolio, a failure to diversify, or an investment with far more risk than the investor understood are common causes of large investment losses. The broker negligence attorneys at Gana Weinstein LLP help investors at firms such as Blue Ocean Ats determine whether their financial advisor breached the duty to recommend suitable investments and, when the advisor did, pursue recovery through FINRA arbitration.
Blue Ocean ATS operates an alternative trading system for overnight trading of United States NMS stocks from 8 PM to 4 AM Eastern Time, Sunday through Thursday, giving brokers and investors in Asia and elsewhere access to United States equities outside regular market hours. Organized in Delaware in 2019 and headquartered in West Palm Beach, Florida, the firm is owned by Blue Ocean Technologies and has expanded through partnerships with brokers in South Korea, Hong Kong and other Asia Pacific markets.
Blue Ocean Ats – By the Numbers:
- CRD #: 306512
- Regulatory Events: 1
- Broker Employees: 12
Blue Ocean Ats – In the News:
FINRA v. Blue Ocean Ats (Case #2024080158101) – Since inception, Blue Ocean’s ATS has accounted for approximately 95% of all trading volume in the overnight session, including a substantial volume of low-priced securities. Despite the well-known risks associated with trading low-priced securities, including potential price manipulation, the firm did not have reasonable policies and procedures to detect and cause the reporting of suspicious activity since at least January 2023 to the present, in violation of FINRA Rules 3310 and 2010. During the same period, Blue Ocean’s supervisory system, including its written supervisory procedures (WSPs), did not address various forms of manipulation relevant to its business. The firm’s manual review of two reports to detect manipulative trading was unreasonable, including because the reports were limited in scope and not reasonably designed to detect patterns. The firm therefore violated FINRA Rules 3110 and 2010. For these violations, Blue Ocean is censured, fined $550,000, and has agreed to an undertaking.
Investors who believe they were the victim of broker misconduct or financial advisor negligence at Blue Ocean Ats should act promptly, because FINRA arbitration claims are subject to time limits. Contact the securities arbitration lawyers at Gana Weinstein LLP for a free consultation.