Defendant Name:
NYSE Euronext
Defendant Type:
Public Company
Document Reference:
2012-189
Document Details
Legal Case Name
In the Matter of New York Stock Exchange, LLC, and NYSE Euronext
Document Name
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
Document Date
14-Sep-2012
Document Format
Administrative Proceeding
Allegation Type
Other
Document Summary
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).
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Compliance Related Independent Consultant
Various Undertakings
Other Defendants in Action: