Blackwood Securities, LLC (CRD #44669, New York, New York) and Craig Robert Schlifstein (CRD #2637134, Registered Representative, New York, New York) submitted a Letter of Acceptance, Waiver, and Consent in which the firm was censured and fined $105,000, $20,000 of which is joint and several with Schlifstein. Schlifstein was suspended from association with any NASD member in any capacity for 10 business days. Without admitting or denying the allegations, the respondents consented to the described sanctions and to the entry of findings that the firm, acting through Schlifstein, failed to submit required information to the Order Audit Trail SystemSM (OATSSM) on 506 consecutive business days, and submitted to OATS reports with respect to equity securities traded on The Nasdaq Stock Market that were not in the electronic form prescribed by NASD. The findings stated that the reports were rejected by the OATS system and notice of such rejection was made available to the firm on the OATS Web Site, but the firm did not correct or replace any of the subject reports. NASD also found that the firm, acting through Schlifstein, transmitted to OATS reports that contained inaccurate, incomplete, or improperly formatted data, executed a short-sale transaction in a Nasdaq National Market® (NNM®) security at or below the current inside bid when the current inside bid was below the preceding inside bid in the security, and executed short-sale orders and failed to make an affirmative determination prior to executing such transactions. Furthermore, the firm, acting through Schlifstein, failed to respond timely and/or completely to NASD requests for information. In addition, the findings stated that the firm, acting through Schlifstein, failed to keep current and amend Schlifstein's application for registration, and the firm's supervisory system did not provide for supervision reasonably designed to achieve compliance with respect to applicable securities laws and regulations concerning the bid test rule, the affirmative determination rule, and the OATS reporting rules. Schlifstein's suspension began August 18, 2003, and concluded at the close of business August 29, 2003. (NASD Case #CMS030168)
Omar, thanks for the honesty. Money is not an issue since I do trade with my own capital, however, commissions are always a factor, so that is why I am (was?) considering HOLD. TradeScape's system, IMHO, has a way to go in the Listed Trading category. John