In addition to the 717 instances of spoofing by the two former traders, Finra said it identified almost 280 additional instances of trading activity in U.S. Treasury securities that bore some indicia of potential spoofing during the relevant period.
“Due to the supervisory deficiencies, BofAS’s supervisory system did not identify these trades as potential instances of spoofing warranting further review,” Finra said.
BofAS began remediating its supervisory deficiencies in mid-2019 and completed remediation in October 2022, Finra said. BofAS’s remediation included expanding its surveillance to capture potential manual spoofing in U.S. Treasury securities, increasing the number and expertise of staff dedicated to surveillance since 202 and implementing cross-product spoofing surveillance, Finra added.