Leadership and Companies
SEC Hits OTC Link With $575,000 Penalty for SCI Failures
The SEC censured OTC Link LLC and fined it $575,000 for repeated Regulation SCI compliance failures.
What happened
The Securities and Exchange Commission censured New York-based broker-dealer OTC Link LLC and ordered it to pay a $575,000 civil penalty. The action covers violations between August 2016 and March 2025 involving OTC Link ATS, the alternative trading system operated by the firm for over-the-counter securities. The SEC said OTC Link failed to establish, maintain, finalise, enforce, and periodically review required policies covering system security, access controls, application vulnerability management, testing, and remediation. SEC examinations repeatedly identified deficiencies, but the firm did not promptly correct them. OTC Link agreed to a cease-and-desist order and censure without admitting the findings.
Why it matters
The penalty puts a direct cost on prolonged failures in controls governing the security, resilience, availability, and integrity of a trading system. The SEC’s action also makes clear that repeatedly leaving identified deficiencies unresolved can trigger enforcement and financial penalties.
Source: U.S. SEC Press Releases