Securities Lawyers Blog
The investment lawyers at Gana Weinstein LLP have experience helping investors determine whether their portfolio losses at investment firms, such as GTS Securities LLC, were caused by broker misconduct. There are many different ways that your broker can impermissibly drain your accounts. Our attorneys can help you understand the cause of your investment losses, uncover misconduct, and apply the law to hold accountable those responsible.
GTS Securities is a broker-dealer that makes markets in listed equities and options on several United States exchanges, serves as a designated market maker on the New York Stock Exchange for assigned symbols, and conducts proprietary trading. Formed in Delaware in 2008 and based in New York, the firm is wholly owned by GTS Financial, whose electronic market-making group has accounted for roughly 3 to 5 percent of daily United States cash equities volume.
GTS Securities LLC – By the Numbers:
- CRD #: 149224
- Regulatory Events: 38
- Broker Employees: 131
GTS Securities LLC – In the News:
FINRA v. GTS Securities LLC (Case #2021071797801) – From May 2019 through March 2021, GTS published 23 inaccurate monthly reports of executions of covered orders in National Market System (NMS) securities required under Regulation NMS Rule 605 of the Securities Exchange Act of 1934. As a result, GTS violated Regulation NMS Rule 605 and FINRA Rule 2010. In addition, from May 2019 through July 2021, GTS’s supervisory system, including its written supervisory procedures, was not reasonably designed to achieve compliance with Rule 605. As a result, GTS violated FINRA Rules 3110 and 2010. For these violations, GTS is censured and fined $150,000.
FINRA v. GTS Securities LLC (Case #2019064352201) – From October 2019 to the present, GTS failed to establish, document, and maintain a system of risk management controls and supervisory procedures reasonably designed to prevent the entry of erroneous orders in violation of Section 15(c)(3) of the Securities Exchange Act of 1934, Exchange Act Rules 15c3-5(b) and 15c3-5(c)(1)(ii), and FINRA Rules 3110 and 2010.
FINRA v. GTS Securities LLC (Case #2016051549205) – From April 23, 2014 through July 31, 2015, the firm failed to obtain a locate in connection with over 26,000 proprietary short sale transactions as required by Rule 203(b)(1) of Regulation SHO of the Securities Exchange Act of 1934 (Exchange Act Rule 203(b)(1)). The firm’s failure was attributable to a system coding issue that went undetected. The firm’s supervisory system, including its written supervisory procedures, was not reasonably designed to achieve compliance with Rule 203(b)(1) because it did not include a review to determine if the easy to borrow designation for equity securities was accurately captured into the firm’s systems. Based on the foregoing, the firm violated Exchange Act Rule 203(b)(1), NASD Rule 3010 (for conduct before December 1, 2014), FINRA Rule 3110 (for conduct on or after December 1, 2014), and FINRA Rule 2010.
FINRA v. GTS Securities LLC (Case #2015045798103) – The Trade Reporting Team of FINRA’s Department of Market Regulation reviewed the Firm’s compliance with inputting the correct capacity on orders entered on the FINRA/Nasdaq Trade Reporting Facility (“FNTRF”) and several equity exchanges between July 15, 2015 and May 12, 2016. During that period, as a result of a coding error, the Firm entered “Principal” orders as “Agency” orders in approximately 22 million instances, including approximately 6,937,587 orders entered on the FNTRF, in violation of FINRA Rule 7230A(d). The Firm also failed to establish and maintain a supervisory system reasonably designed to achieve compliance with these requirements.
Our attorneys have successfully represented hundreds of investors in investment disputes with their brokers and brokerage firms. Our consultations are free and we welcome all inquiries.