NEW YORK — The National Association of Securities Dealers said it fined a U.S. brokerage unit of HSBC Holdings PLC $250,000 for failing to have adequate systems in place to supervise trading of government securities.
The firm, HSBC Brokerage, also failed to ensure that its customers wouldn’t be harmed by its routing orders to HSBC Securities, another securities affiliate of the London-based banking giant. In April 2005, the two units merged under the name HSBC Securities.
The HSBC unit settled without admitting or denying charges but consented to the findings, the NASD said. An HSBC spokesman declined further comment.