Mirae Asset Securities (USA) Inc.

Mirae Asset Securities (USA) Inc. was fined $170,000 for failing to establish, maintain, and enforce a supervisory system, including WSPs, reasonably designed to achieve compliance with rules and laws prohibiting manipulative trading, including prearranged, coordinated, and momentum ignition trading.

The findings stated that the firm’s WSPs failed to describe how trading patterns indicating potentially prearranged or coordinated trading would be identified within a single omnibus account and how such activity would be investigated when detected.

The firm’s WSPs also did not describe momentum ignition or how to identify it. As a result, the firm failed to identify or reasonably respond to red flags of prearranged or coordinated trading and momentum ignition in omnibus accounts. In addition, the firm failed to reasonably respond to other alerts, closing them without investigation.