SEC Censures OTC Link LLC and Imposes $575,000 Penalty Over Regulation SCI Failures

The U.S. Securities and Exchange Commission (SEC) has censured New York-based broker-dealer OTC Link LLC and ordered the firm to pay a $575,000 civil penalty. The enforcement action resolves charges concerning longstanding compliance violations related to Regulation Systems Compliance and Integrity (SCI). Regulation SCI requires key market participants, including alternative trading systems and certain broker-dealers, to maintain robust technological systems, comprehensive operational policies, and strict business continuity procedures to ensure the resilience and integrity of the U.S. securities markets. According to the SEC's settled order, OTC Link experienced recurring compliance deficiencies regarding its obligations under Regulation SCI. Without admitting or denying the findings, the broker-dealer agreed to the censure and the monetary penalty to resolve the regulatory proceedings.