SEC Censures OTC Link LLC

The SEC’s settled order finds that between August 2016 and March 2025, the New York-based broker dealer failed to establish, maintain, and enforce written policies required by Regulation SCI for its alternative trading system, OTC Link ATS.

The required policies pertained to system security, access control, and application vulnerability management, testing, and remediation.

Staff in the SEC’s Division of Examinations examined OTC Link ATS several times during the period and each time flagged required policies that the firm had not established or kept in draft form, the order finds.

OTC Link LLC repeatedly failed to promptly remediate the deficiencies, according to the order.

The firm lacked written policies reasonably designed to ensure its SCI systems had adequate capacity, integrity, resiliency, availability, and security, violating Rule 1001(a)(1) of Regulation SCI.

Without admitting the findings, OTC Link LLC agreed to a cease-and-desist order, a censure, and the civil penalty.