SEC Charges Archipelago Trading Services with Failing to File Suspicious Activity Reports

The Securities and Exchange Commission today announced charges against Archipelago Trading Services Inc. (ATSI) for failing to file hundreds of legally required reports of suspicious financial transactions, known as Suspicious Activity Reports (SARs), between August 2012 and September 2020. The charges were related to transactions in over-the-counter (OTC) securities executed on ATSI’s alternative trading system (ATS). ATSI, a Chicago-based broker-dealer, has agreed to pay $1.5 million to settle the charges. According to the SEC’s order, ATSI’s sole line of business is to operate an OTC equity securities ATS, known as Global OTC, which is used by broker-dealers to execute trades in OTC securities.