Defendant Name: New York Stock Exchange LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: NYSE Euronext
SIC Code: 6231
CUSIP: 62949110

Initial Case Details

Legal Case Name In the Matter of New York Stock Exchange, LLC, and NYSE Euronext
First Document Date 14-Sep-2012
Initial Filing Format Administrative Action
File Number 3-15023
Allegation Type Other

Violations Alleged

Securities Act
• Sec 17(a)(1)
Other
• Rule 603(a) Regulation NMS

Resolutions

First Resolution Date 14-Sep-2012
Headline Total Penalty and Disgorgement $5,000,000

Related Documents:

34-67857 14-Sep-2012 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 19(h)(1) and 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Sanctions and a Cease-and-Desist Order
On September 14, 2012, the SEC issued an order instituting cease-and-desist proceedings to the New York Stock Exchange LLC (NYSE) and NYSE Euronext. According to the Order: "When Congress mandated a national market system ('NMS') for trading securities in 1975, it emphasized that consolidated data 'would form the heart of the national market system.'... Accordingly, exchanges are required to send their best-priced quotations (or "quotes") and trade reports to be included in the consolidated feeds.... [T]o preserve the integrity of the consolidated feeds, a Commission rule--Rule 603(a) of Regulation NMS--requires that exchanges distribute market data on terms that are 'fair and reasonable' and 'not unreasonably discriminatory.' ... Over an extended period, NYSE violated Rule 603(a) in connection with the release of certain data through two proprietary feeds.... NYSE violated Rule 603(a) of Regulation NMS and the record retention provisions of Section 17(a)(1) of the Exchange Act and Rule 17a-1 thereunder. NYSE Euronext, which supplied the personnel responsible for these systems and compliance issues, caused the violations."

Other Defendants in Action:

NYSE Euronext