Blue Ocean ATS

05/04/2026: Since inception, Blue Ocean’s ATS has accounted for approximately 95% of all trading volume in the overnight session, including a substantial volume of low-priced securities. Despite the well-known risks associated with trading low-priced securities, including potential price manipulation, the firm did not have reasonable policies and procedures to detect and cause the reporting of suspicious activity since at least January 2023 to the present, in violation of FINRA Rules 3310 and 2010. During the same period, Blue Ocean’s supervisory system, including its written supervisory procedures (WSPs), did not address various forms of manipulation relevant to its business. The firm’s manual review of two reports to detect manipulative trading was unreasonable, including because the reports were limited in scope and not reasonably designed to detect patterns. The firm therefore violated FINRA Rules 3110 and 2010. For these violations, Blue Ocean is censured, fined $550,000, and has agreed to an undertaking...

Reference 2024080158101finra.orgdata-portal.finra.org