The broker-dealer unit of Getco has been fined $450,000 for failing to properly supervise its high-frequency trading.
Nasdaq OMX says that it asked regulator Finra's market manipulation investigators to look at Octeg's trading between 7 May 2010 (the day after the infamous 'flash crash') and the following December.
Finra's review found that the Getco unit "failed to establish and maintain a reasonable supervisory system, including but not limited to its written supervisory procedures and supervisory and operational risk control systems related to the oversight and operation of high-frequency trading and algorithmic trading".
Octeg has been censured, fined $450,000 and told to bring in, within 60 days, an independent consultant to overhaul operations. Despite settling, the company has neither admitted nor denied any wrongdoing.
In a statement, Getco says: "While there was no harm caused to the market or to any participants, we are always looking for ways to further enhance our policies, procedures and controls."