FINRA Censures, Fines G1 Execution Services LLC

By August 27, 2021 News

G1 Execution Services LLC (“G1”) recently agreed to a censure and $575,000 fine by the Financial Industry Regulatory Authority (“FINRA”) relating to failure to use best executive practices when executing trades. In addition, G1 agreed to pay $816,618.75, plus interest, in restitution to customers.

G1, headquartered in Chicago, is a “market maker in Over-the-Counter (OTC) securities as well as National Market System securities, and it also executes orders on behalf of its broker-dealer customers,” according to the Letter of Acceptance, Waiver and Consent (“AWC”) that G1 entered into with FINRA.

As stated in the AWC regarding G1 Execution Services LLC’s violations:

“During the period January 1, 2013 through January 31, 2016, the firm failed to provide best execution to 41,505 orders from its broker-dealer clients on behalf of their customers1in OTC securities by failing to use reasonable diligence to ascertain the best market for the subject securities and failing to buy or sell in such market so that the resultant prices to the customers were as favorable as possible under prevailing market conditions. As a result, the firm violated FINRA Rules 5310 and 2010.”

Fishman Haygood’s team of investment fraud lawyers represent investors who have suffered investment losses in claims against their brokers or financial advisors and the firms employing/supervising them, including firms responsible for executing trades. If you believe that you may have suffered financial losses due to the misconduct of a financial professional or firm, we may be able to help. Please contact us to discuss your potential claim.