In a case that underscores the increasing regulatory scrutiny on trading infrastructure and compliance protocols, SpeedRoute LLC has been fined $300,000 by FINRA and an additional $600,000 civil penalty by the SEC for a series of supervisory and AML failures between 2020 and 2023.

According to the reports, SpeedRoute—a broker-dealer that provides direct market access—failed to implement a reasonable supervisory system, violating FINRA Rules 3110 and 2010. Additionally, the firm lacked a sufficient Anti-Money Laundering (AML) program, breaching FINRA Rule 3310. Perhaps most concerning was its failure to file Suspicious Activity Reports (SARs) for numerous red-flag transactions, triggering SEC involvement.

What Happened – Explained Simply

SpeedRoute is a U.S.-based broker-dealer that routes trades to financial markets. Regulators discovered that it did not have proper systems in place to monitor its clients' trading activity. It failed to detect or report suspicious transactions, which is a major red flag in anti-money laundering rules.

Between 2020 and 2023, it didn’t file a single SAR (Suspicious Activity Report), even though there were multiple signs of potentially illegal behavior.

Because of this:

• FINRA fined them $300,000
  
  
• The SEC added a $600,000 civil penalty
  
  

This wasn’t just about mistakes—it was about lacking basic compliance structures altogether.

Why It Matters for Prop Firms

Even though SpeedRoute is not a prop firm, the implications are highly relevant to proprietary trading. Many prop firms work with execution venues and brokers like SpeedRoute. If those partners are not compliant, the reputational and operational risk can fall back on your firm too.

Key lessons:

• AML programs must be real, not just policy documents
  
  
• Supervisory systems must function and evolve with the business
  
  
• Regulatory bodies are watching—and acting
  
  

Final Thoughts

The SpeedRoute case is not just a regulatory footnote, it’s a warning. In today’s environment, where oversight is increasing and accountability is non-negotiable, firms that neglect compliance are not just risking fines, they’re risking their future. For prop trading firms, where speed and execution dominate, this is a reminder that compliance must move just as fast.