Merrill Lynch has agreed to pay $1.4 million to settle Finra charges that the firm failed to supervise extended-settlement transactions.

Finra claimed Merrill failed to collect adequate margin and make net-capital reductions to account for extended-settlement transactions worth hundreds of millions of dollars across numerous product lines over a period from at least April 2013 through June 2015.

During a representative period from March 2012 through June 2012, Finra found that the firm failed to collect an average of $119 million in margin and should have deducted an average of $90 million in net capital as a result of outstanding extended trades.

In April 2013, Finra informed Merrill that it had to apply margin and net capital requirements to extended trades. In May 2014, the firm revised its written procedures to apply net capital rules to its institutional business, but failed to institute remedial measures to its retail business until mid-2015, Finra said.

In an email, Merrill spokesman Bill Halldin said the firm has “addressed the issues raised in this matter.”

In settling, Merrill Lynch neither admitted nor denied the charges.