Defendant Name: NYSE Euronext

Defendant Type: Public Company
SIC Code: 6231
CUSIP: 62949110

Document Reference: 34-67857

Document Details

Legal Case Name In the Matter of New York Stock Exchange, LLC, and NYSE Euronext
Document Name 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
Document Date 14-Sep-2012
Document Format Administrative Proceeding
File Number 3-15023
Allegation Type Other
Document Summary 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."

Disgorgement & Penalty Information

Cease and Desist Order
Compliance Related Independent Consultant
Various Undertakings

Related Documents:

2012-189 14-Sep-2012 Press Release--Administrative Proceeding
SEC Charges New York Stock Exchange for Improper Distribution of Market Data; NYSE Agrees to Settle Charges by Paying First-Ever SEC Financial Penalty Against An Exchange
On September 14, 2012, the SEC announced that it brought first-of-its-kind charges against the New York Stock Exchange ("NYSE") and its parent company NYSE Euronext for compliance failures that gave certain customers an improper head start on trading information. SEC Regulation National Market System prohibits the practice of improperly sending market data to proprietary customers before sending that data to be included in what are known as consolidated feeds, which broadly distribute trade and quote data to the public. This ensures the public has fair access to current market information. According to the SEC's order, NYSE violated this rule over an extended period of time beginning in 2008 by sending data through two of its proprietary feeds before sending data to the consolidated feeds. NYSE's inadequate compliance efforts failed to monitor the speed of its proprietary feeds compared to its data transmission to the consolidated feeds. Without admitting or denying the SEC's findings, NYSE and NYSE Euronext agreed to a settlement. Accordingly, the SEC's order censures NYSE, imposes a $5 million penalty, and requires both NYSE and NYSE Euronext to cease and desist from committing or causing any future violations. Additionally, NYSE and NYSE Euronext are required to retain an independent consultant to conduct a comprehensive review of their market data delivery systems to ensure that they comply with Rule 603(a).

Other Defendants in Action: