- SEC’s charges involve alleged lapses in blue sheet data.
- Goldman Sachs reportedly admitted to the charges.
Goldman Sachs was caught in a tough spot after the Securities and Exchange Commission (SEC) imposed a $6 million penalty for alleged failure to provide accurate and complete blue sheet data—a crucial component of securities trading information.
Over approximately ten years, the investment giant submitted more than 22,000 deficient blue sheet reports, containing errors spanning 43 different types, that affected at least 163 million transactions, the regulator said.
“Firms must provide complete and accurate blue sheet data in response to our requests,” said Thomas Smith, the Associate Regional Director at SEC’s New York Regional Office. “Blue sheet data is vital to the Commission’s ability to carry out its enforcement and regulatory functions and to protect investors and maintain market integrity.”
Goldman Sachs Admits Fault
In an admission of these findings, the firm has agreed to a censure and the payment of a $6 million penalty. Additionally, Goldman Sachs has undertaken remedial efforts to address the issue, including conducting a comprehensive review of its reporting program. It’s worth noting that the Financial Industry Regulatory Authority (FINRA) also reached a settlement with Goldman Sachs regarding related conduct.
Meanwhile, Citadel Securities, a broker-dealer headquartered in Miami, also found itself in the crosshairs of the Securities and Exchange Commission (SEC), forcing settlement for charges related to alleged violation of Regulation SHO. This regulatory framework, designed to address abusive short-selling practices, mandates that broker-dealers accurately mark sale orders as either long or short-exempt.
According to the securities watchdog, Citadel Securities agreed to pay a substantial $7 million penalty to resolve the charges.
