SEC censures OTC Link LLC for repeated compliance failures under Regulation SCI

WASHINGTON — The Securities and Exchange Commission censured New York-based broker-dealer OTC Link LLC on Sept. 22, 2026, and ordered the firm to pay a $575,000 civil penalty to resolve longstanding violations of Regulation Systems Compliance and Integrity (SCI). The enforcement action, detailed in an announcement published by the commission, targets repeated compliance failures involving core market infrastructure used to trade over-the-counter securities.

Strategic Context

Regulation SCI requires designated critical market participants—including certain alternative trading systems—to maintain robust, resilient, and secure technological infrastructure. These rules are designed to reduce the frequency and impact of systems disruptions, ensure adequate capacity, and mandate prompt reporting of technological failures to regulators. OTC Link LLC operates systems that form a key plumbing layer for the over-the-counter market, making adherence to SEC technology standards a central requirement for its ongoing operations.

Forward Outlook

According to the SEC's settled order, OTC Link LLC agreed to the censure and the $575,000 financial penalty without admitting or denying the commission's findings. For operators and compliance officers managing alternative trading systems and broker-dealer infrastructure, the action serves as a regulatory reminder regarding the enforcement of operational resilience standards. Firms maintaining critical market systems face heightened scrutiny over their capacity to prevent repeated technological and compliance lapses under Regulation SCI.