Securities Lawyers Blog
Is a brokerage firm responsible for broker misconduct? Under FINRA rules, a firm such as Clear Street LLC must supervise the financial advisors it registers, and it can be held liable in FINRA arbitration when a broker’s unsuitable recommendations, unauthorized trading, or misrepresentations cause investment losses. The broker misconduct attorneys at Gana Weinstein LLP bring these claims on behalf of investors and can evaluate whether a firm failed to supervise your broker.
Clear Street is a broker-dealer that operates a cloud-native clearing and custody platform, offering clearing and settlement, prime brokerage, securities financing, execution, investment banking and active trading services to hedge funds, traders, family offices and other broker-dealers. Founded in 2018 and headquartered at 4 World Trade Center in New York City, the firm has expanded into the United Kingdom and the Asia-Pacific region.
Clear Street LLC – By the Numbers:
- CRD #: 288933
- Regulatory Events: 2
- Arbitration Events: 1
- Broker Employees: 256
Clear Street LLC – In the News:
FINRA v. Clear Street LLC (Case #2022074845301) – From January 2022 to June 2023, Clear Street routed options orders for execution with inaccurate origin codes, resulting in the execution of 988,170 options contracts with an origin code of “Customer” that should have been coded “Professional Customer.” These inaccurate origin codes were contained in the firm’s books and records. Therefore, the firm violated Section 17(a) of the Securities Exchange Act of 1934, Exchange Act Rule 17a-3(a)(6)(i), and FINRA Rules 4511 and 2010. In addition, from February 2021 to August 2023, the firm violated FINRA Rules 3110 and 2010 by failing to establish and maintain a system reasonably designed to supervise the accuracy of its options origin codes. For these violations, Clear Street is censured and fined $175,000.
Wondering whether you can sue your financial advisor or Clear Street LLC? The investment loss attorneys at Gana Weinstein LLP can answer that question after a free review of your account statements. We welcome all inquiries.