NASD fined State Street Corp. $1.4 million for failing to report $5 billion in corporate and municipal bond trades between July 2003 and December 2004.

By failing to report the corporate trades on NASD's Trade Reporting and Compliance Engine (TRACE) and the municipal trades to the Municipal Securities Rulemaking Board (MSRB), State Street put other investors at a disadvantage because investors look to TRACE and MSRB for volume and price transparency , NASD said. The regulator said State Street made the errors because it failed to set up support of new accounts properly.

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