ShiftPixy, a Miami-based national staffing enterprise which designs, manages, and sells access to a disruptive, revolutionary platform that facilitates employment in the rapidly growing Gig Economy, announced it has engaged a registered broker dealer to review PIXY trading data and collaborate in filing FinCEN 314(b) suspicious activity reports (“SAR”) on its behalf. Section 314(b) of the USA Patriot Act provides financial institutions with the ability to share information with one another, under a safe harbor that offers protections from liability, in order to better identify and report activities that may involve money laundering or terrorist activities. Information sharing pursuant to Section 314(b) is voluntary, and FinCEN strongly encourages financial institutions to participate. The process can yield a number of useful outcomes:
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“We will be among the first to correlate monthly market maker share volume, daily short volume and share imbalance data within this legal framework strategy to identify and uncover suspicious trading activity on which we can follow up with appropriate legal action.”
- Shedding more light upon overall financial trails, especially if they are complex and appear to be layered amongst numerous financial institutions, entities, and jurisdictions.
- Alerting other participating financial institutions to trading entities of whose suspicious activities they may not have been previously aware.
- Facilitating the filing of more comprehensive SARs than would otherwise be filed in the absence of 314(b) information sharing.
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Section 314(b) and its implementing regulations impose no limitations on the sharing of personally identifiable information under the Section 314(b) safe harbor when otherwise consistent with Section 314(b) and its implementing regulations. Nor do Section 314(b) or its implementing regulations impose restrictions on the type or medium of information that can be shared in reliance on the Section 314(b) safe harbor, such as video surveillance footage or cyber-related data such as IP addresses. Section 314(b) information sharing can likewise be verbal as well as written. Financial institutions and associations of financial institutions must maintain adequate procedures to protect the security and confidentiality of all information shared pursuant to Section 314(b) and only use such information for the purposes laid out in Section 314(b) and its implementing regulations.
ShiftPixy’s CEO Scott Absher said, “I have been tracking naked short selling patterns since we first listed. We are now seeing algorithmic trading running wild as these trades appear to be run through a black box that is out-of-compliance with Regulation SHO and the Fair Market Making Requirement. We are able to track trading activity in real time with Level ll data and DTC weekly reporting, and can now track the registered market makers conducting these trades, either as a proprietary transaction, on behalf of a client, or via a sponsored or market access agreement.” Mr. Absher went on to say, “We will be among the first to correlate monthly market maker share volume, daily short volume and share imbalance data within this legal framework strategy to identify and uncover suspicious trading activity on which we can follow up with appropriate legal action.”
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