State Street Global Markets, the research and trading arm of US bank State Street, has been hit with a $1.4m (€1.2m) fine by the NASD in the US securities watchdog's largest penalty against a single firm for failing to report fixed income trades correctly.

Mary Schapiro, vice chairman of NASD, said: "State Street Global's reporting failures deprived the markets, investors and regulators of critical information, and impaired the integrity of bond trading data that market participants rely upon to make informed investment decisions."