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Alpaca Securities LLC has agreed to a $300,000 fine and censure from FINRA to settle findings related to extensive trade reporting violations and supervisory failures. The issues spanned multiple years and involved millions of transactions reported to FINRA facilities.
Wikilix Editorial Team
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Alpaca Securities LLC has agreed to pay a $300,000 fine and accept a censure as part of a settlement with the Financial Industry Regulatory Authority (FINRA). The sanctions arise from the firm’s failures in trade reporting and supervision over several years, affecting millions of transactions reported to FINRA trade reporting facilities.
Between April 2021 and June 2025, Alpaca failed to timely report approximately 1.87 million transactions to the FINRA/Nasdaq Trade Reporting Facility (FNTRF). FINRA determined that these failures violated FINRA Rules 6380A and 2010, which govern trade reporting requirements and standards of commercial honor and principles of trade.
In a separate but related issue, from February 2021 to May 2023, Alpaca submitted inaccurate trade reports to both the FNTRF and the Over-the-Counter Reporting Facility (ORF). The firm reported inaccurate execution quantities for more than 6,700 transactions. In addition, it omitted the required prior reference price modifier and prior reference time for approximately 2.2 million transactions. FINRA found that these inaccuracies and omissions violated FINRA Rules 6380A, 6622, and 2010.
FINRA also identified longstanding deficiencies in Alpaca’s supervisory framework for trade reporting. From December 2020 through February 2026, the firm failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with FINRA’s trade reporting rules. These shortcomings were found to be in violation of FINRA Rules 3110 and 2010, which require members to maintain an effective supervisory system and high standards of commercial honor.
Alpaca has been a FINRA member since 2018. The firm is headquartered in New York, NY, and operates nine branches with approximately 60 registered representatives. Alpaca provides customers with self-directed, commission-free trading through its online trading platform and began offering correspondent and clearing services in May 2022.
The settlement, which includes the $300,000 fine and censure, addresses the firm’s historical trade reporting and supervisory failures across multiple FINRA facilities and reporting rules over a period spanning from 2020 through 2026.
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