• FINRA issued Letter of acceptance, waiver, and consent (AWC) to RBC Capital Markets LLC (RBC) for overreporting short positions and supervisory system failures.

Allegations

• Between December 2018 - April 2021 RBC violated FINRA Rule 4560, FINRA Rule 2010 by overreporting shares associated with 3,513 short positions by 697mn shares.
• Violated FINRA Rule 3110 and FINRA Rule 2010 by failing to maintain supervisory system, including written procedures, to meet short position reporting requirements.
• Also violated FINRA Rule 3110 and FINRA Rule 2010 by not testing coding of accounts or implementing processes to check notifications on short position reporting.

Enforcement

• RBC consented to receive censure and fine of $250,000 paid upon notice of this letter.