Wilson-Davis & Co.

Wilson-Davis & Co. was fined $1,100,000 based on findings that the firm engaged in short selling in violation of Rule 203(b)(1) of Regulation SHO because it failed to find locates for short transactions effected in low-priced stocks.

The short sales were effected to carry out a speculative trading strategy implemented by a former registered representative and did not involve bona fide market making.

The firm’s president, CCO and AML compliance officer, failed to establish and maintain reasonable supervisory systems and WSPs in connection with the firm’s use of the market maker exemption, locate requirements and general compliance with Reg SHO.