The Financial Industry Regulatory Authority (FINRA) has sanctioned Goldman Sachs Execution & Clearing, LP over alleged systemic violations of certain regulatory reporting requirements, FINRA announced on Monday.

FINRA imposed a US$1.8 million fine in connection with systemic violations of Order Audit Trail System (OATS) requirements, failing to accurately submit required trade reports to the appropriate FINRA Trade Reporting Facility (TRF), and related supervisory failures.

The firm settled the allegations without admitting or denying the charges, but consented to the entry of FINRA’s findings.

“OATS data is integral to FINRA’s automated market surveillance program to detect manipulative activity and other potential violations of FINRA rules and federal securities laws. It is critical that firms have the necessary systems and supervision in place to ensure compliance with their OATS and trade reporting obligations,” says Thomas Gira, executive vice president of FINRA Market Regulation, in a statement.

Goldman Sachs Execution & Clearing failed to transmit a substantial number of order-related events to OATS for its alternative trading system for approximately seven years, and transmitted inaccurate data for a large number of order-related events for more than eight years, FINRA says.

In addition, the firm also submitted a large number of inaccurate, incomplete or improperly formatted trade reports for a three-month period; and, did not have adequate systems and controls in place to detect and prevent the violations, FINRA adds.