logo
Plus   Neg
Share
Email

SEC: NYSE To Pay $14 Million Penalty For Regulatory Violation

The Securities and Exchange Commission Tuesday said it has charged the New York Stock Exchange and two affiliated exchanges with regulatory failures in connection with multiple episodes, including several disruptive market events.

The charges arose from five separate investigations and include the first-ever charged violation of Regulation SCI. The exchanges have agreed to pay a $14 million penalty.

According to the SEC's order, the violations include erroneously implementing a market-wide regulatory halt, negligently misrepresenting stock prices as "automated" despite extensive system issues ahead of a total shutdown of two of the exchanges, and applying price collars during unusual market volatility on August 24, 2015, without a rule in effect to permit them - a move that resulted in order imbalances being resolved more slowly.

"Exchanges play an important role in protecting investors," said Stephanie Avakian, Co-Director of the SEC's Division of Enforcement. "For retail investors to have confidence in our markets, exchanges must provide accurate information and comply with legal requirements, including being equipped for unexpected market disruptions."

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Carlos Torres Vila, CEO of the Spanish bank Banco Bilbao Vizcaya Argentaria SA or BBVA , warned that blockchain technology is not mature and faces significant challenges, el Economista reported. However, he believes the advantages of blockchain technology are so important to their business. Down the line, GE has transformed from a too-big-to-fail conglomerate to a too-big-for-success albatross. The company has admitted to being too-much focused on EPS and operating profit, and not paying enough attention to cash. However, GE is certainly learning lessons from its past and refocusing its strategies to stage a comeback to its Camelot days, the key catalysts being... Industrial conglomerate General Electric Co., one of the original components of the Dow Jones Industrial Average, has been replaced by Walgreens Boots Alliance Inc. in the blue-chip index. The change comes into effect prior to the open of trading on Tuesday, June 26. The 122-year-old Dow Jones Industrial Average, or simply the Dow, is a stock market index with 30 component companies.
Follow RTT