NASDAQ PHLX LLCLETTER OF ACCEPTANCE, WAIVER AND CONSENT
NO. 2019.02.0023
TO:Nasdaq PHLX LLC
Phlx Enforcement Department

RE:

Dash Financial Technologies LLC
Member Firm
CRD No. 104031

Pursuant to Rule 9216 of the Nasdaq PHLX LLC (“Phlx”) Code of Procedure, Dash Financial
Technologies LLC (the “Firm,” “Dash,” or “Respondent”) submits this Letter of Acceptance,
Waiver and Consent (“AWC”) for the purpose of proposing a settlement of the alleged ruleviolations described below. This AWC is submitted on the condition that, if accepted, Phlx
will not bring any future actions against the Respondent alleging violations based on the same
factual findings described herein.
I.
ACCEPTANCE AND CONSENTA.

The Firm hereby accepts and consents, without admitting or denying the findings, andsolely for the purposes of this proceeding and any other proceeding brought by or on
behalf of Phlx, or to which Phlx is a party, prior to a hearing and without anadjudication of any issue of law or fact, to the entry of the following findings by Phlx:
BACKGROUND AND RELEVANT DISCIPLINARY HISTORYThe Firm became a member of Phlx on February 11, 2003, and its registration remains ineffect. The Firm has no relevant disciplinary history.
SUMMARY
During the period March 1, 2017 through November 8, 2017 (the “Review Period”), theFirm violated Rule 760, 1 Rule 785(c), 2 Rule 1053, 3 Rule 707, 4 and Rule 708. 5 Theseviolations concern compliance with Phlx rules and policies governing the use of origin
codes.

1This rule is now set forth in Options 6E, Section 1 (Maintenance, Retention and Furnishing of Books,
Records and Other Information).

2

This rule is now set forth in Options 6E, Section 5 (Automated Submission of Trading Data).

3This rule is now set forth in Options 6, Section 10 (Filing of Trade Information).

4

This rule is now set forth in Options 9, Section 1 (Conduct Inconsistent with Just and Equitable Principlesof Trade).

5This rule is now set forth in Options 9, Section 5 (Acts Detrimental to the Interest or Welfare of theExchange).

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FACTS AND VIOLATIVE CONDUCT
1. Phlx Rule 760 required every member to make and keep records as prescribed by Phlx
and by the Exchange Act and rules thereunder.
2. Phlx Rule 785(c) required member organizations to submit certain trade data elements,including any information that Phlx may request from time to time, in an automatedformat.
3. Phlx Rule 1053 required each member organization to supply trade information to Phlx
in a form prescribed by Phlx covering each Phlx options transaction for which themember organization is responsible.
4. Phlx Rule 707 prohibited a member firm from engaging in conduct inconsistent withjust and equitable principles of trade.
5. Phlx Rule 708 prohibited a member firm from engaging in acts detrimental to theinterest or welfare of Phlx.
6. During the Review Period, the Firm submitted on Phlx approximately 2,035 options
orders for one broker-dealer client, with incorrect origin codes of “Customer” instead of“Broker-Dealer,” resulting in the execution of approximately 23,093 contracts witherroneous origin codes in violation of various recordkeeping rules.
7. By virtue of the above conduct, the Firm violated Rule 760, Rule 785(c), Rule 1053,
Rule 707, and Rule 708 of the Phlx rules.
8. The Firm identified the configuration issue that resulted in the violations and completed
remediation efforts on November 8, 2017.
B.

The Firm also consents to the imposition of the following sanctions:
1. A censure and a fine in the amount of $14,060.
Respondent agrees to pay the monetary sanction(s) in accordance with its
executed Election of Payment Form.
Respondent specifically and voluntarily waives any right to claim that it is unable to pay,
now or at any time hereafter, the monetary sanction(s) imposed in this matter.
The sanctions imposed herein shall be effective on a date set by Phlx Enforcement
Department staff.
II.
WAIVER OF PROCEDURAL RIGHTS

Respondent specifically and voluntarily waives the following rights granted under Phlx’s Codeof Procedure:A.

To have a Formal Complaint issued specifying the allegations against the Firm;

B.

To be notified of the Formal Complaint and have the opportunity to answer theallegations in writing;2

C.

To defend against the allegations in a disciplinary hearing before a hearing panel,to have a written record of the hearing made and to have a written decisionissued; andD.

To appeal any such decision to the Phlx Review Council and then to the U.S.
Securities and Exchange Commission and a U.S. Court of Appeals.

Further, Respondent specifically and voluntarily waives any right to claim bias or prejudgmentof the Chief Regulatory Officer, the Phlx Review Council, or any member of the Phlx ReviewCouncil, in connection with such person’s or body’s participation in discussions regarding theterms and conditions of this AWC, or other consideration of this AWC, including acceptance orrejection of this AWC.
Respondent further specifically and voluntarily waives any right to claim that a person
violated the ex parte prohibitions of Rule 9143 or the separation of functions prohibitions ofRule 9144, in connection with such person’s or body’s participation in discussions regarding
the terms and conditions of this AWC, or other consideration of this AWC, including its
acceptance or rejection.
III.
OTHER MATTERS
Respondent understands that:A.

Submission of this AWC is voluntary and will not resolve this matter unless anduntil it has been reviewed and accepted by the Phlx Enforcement Department
and the Phlx Review Council, the Review Subcommittee, or the Office ofDisciplinary Affairs (“ODA”), pursuant to Phlx Rule 9216;

B.

If this AWC is not accepted, its submission will not be used as evidence toprove any of the allegations against the Respondent; andC.

If accepted:
1.

This AWC will become part of the Respondent’s permanent disciplinary
record and may be considered in any future actions brought by Phlx or
any other regulator against the Respondent;

2.

Phlx may release this AWC or make a public announcement concerning
this agreement and the subject matter thereof in accordance with Phlx
Rule 8310 and IM-8310-3; and3.

Respondent may not take any action or make or permit to be made any
public statement, including in regulatory filings or otherwise, denying,directly or indirectly, any finding in this AWC or create the impressionthat the AWC is without factual basis. Respondent may not take any
position in any proceeding brought by or on behalf of Phlx, or to which
Phlx is a party, that is inconsistent with any part of this AWC. Nothing inthis provision affects the Respondent’s right to take legal or factual
positions in litigation or other legal proceedings in which Phlx is not a3

party.
D.

Respondent may attach a Corrective Action Statement to this AWC that is astatement of demonstrable corrective steps taken to prevent future misconduct.
Respondent understands that it may not deny the charges or make any
statement that is inconsistent with the AWC in this Statement. This Statement
does not constitute factual or legal findings by Phlx, nor does it reflect theviews of Phlx or its staff.

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The undersigned, on behalf of the Firm, certifies that a person duly authorized to act on its
behalf has read and understands all of the provisions of this AWC and has been given a fullopportunity to ask questions about it; that the Firm has agreed to the AWC’s provisions
voluntarily; and that no offer, threat, inducement, or promise of any kind, other than theterms set forth herein and the prospect of avoiding the issuance of a Complaint, has been
made to induce the Firm to submit it.
Dash Financial Technologies LLC
Respondent
By: __________________________
Venu Palaparthi
Print Name: ___________________
CCO
Title: _________________________
2/25/2021______________________
Date

Accepted by Phlx:

Signed on behalf of the
Director of ODA, by delegated authority______________________
3/12/2021
Date__________________________________
Muyiwa Odeniyide
Enforcement Counsel
Phlx Enforcement Department

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