Legal News

NYSE Fined $5 Million to Settle Improper Information Leakage of SEC Market Data
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

SEC brings its first financial penalty against a U.S. exchange as the NYSE settled the improper access to market data case for $ 5 million, last week. SEC enforcement director Robert Khuzami said, “Improper early access to market data, even measured in milliseconds, can in today’s markets be a real and substantial advantage that disproportionately disadvantages retail and long-term investors.” SEC had alleged in its action that since 2008, some NYSE customers had an early look at trade order information with “an improper head start” ranging from single-digit milliseconds to multiple seconds.

NYSE issued a statement saying that the SEC was not alleging “any intentional misconduct or that the NYSE data delays caused any investor harm.” NYSE erunext Chief Executive Duncan Niederauer said, “NYSE is pleased to have this matter resolved, and believes that the settlement is in the best interest of its shareholders, clients and employees.”

SEC had alleged that NYSE, run by NYSE Euronext, had violated the Regulation National Market System, or REG NMS, adopted in 2005 to ensure and promote fair access to market data. SEC said that NYSE violated the rule from 2008 by sending data through two of its proprietary feeds before sending out consolidated feeds.

  
What
Where


Daniel Hawke, chief of the SEC enforcement division’s market abuse unit said “The violations at NYSE may have been technological, but not technical … Robust technology governance is just as important to preventing investor harm as any other compliance or supervisory function.”

However, the SEC did not allege that any investors received an unfair competitive edge due to such violations of the NMS regulation by NYSE.

Democratic Senator Carl Levin lauded the actions of SEC and said that the action by SEC “affirms what many have believed for years, which our U.S. capital markets are threatened by those with the resources and access to get split second advantages over the rest of us.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

RELEVANT JOBS

Associate Attorney

USA-PA-Exton

ASSOCIATE ATTORNEY McKenna Snyder LLC, a law firm in Exton, PA has an immediate opening for an ex...

Apply now

Attorney

USA-MI-Sturgis

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Attorney

USA-MI-Coldwater

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Insurance Defense Trial Attorney/ Senior Counsel

USA-CA-San Francisco

Job description Trial Attorney - Personal Injury Defense Full Job Description Hickey Smith ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top