(HedgeCo.Net) The Securities and Exchange Commission has just announced that it 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 Commission adopted Reg SCI to strengthen the technology infrastructure and integrity of the U.S. securities markets, and today charged two NYSE exchanges with violating Reg SCI\u2019s business continuity and disaster recovery requirement. In settlement, the exchanges agreed to pay a $14 million penalty.<\/p>\n
According to the SEC\u2019s order, the violations include erroneously implementing a market-wide regulatory halt, negligently misrepresenting stock prices as \u201cautomated\u201d despite extensive system issues ahead of a total shutdown of two of the exchanges, and applying price collars during unusual market volatility on Aug. 24, 2015, without a rule in effect to permit them \u2013 a move that resulted in order imbalances being resolved more slowly.<\/p>\n
\u201cExchanges play an important role in protecting investors,\u201d said Stephanie Avakian, Co-Director of the SEC\u2019s Division of Enforcement. \u201cFor 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.\u201d<\/p>\n
The SEC\u2019s order also finds, among other things, that the NYSE exchanges broke rules regarding business continuity and disaster recovery in violation of Regulation SCI and also violated Regulation NMS. NYSE, NYSE Arca, and NYSE American neither admitted nor denied the findings in the SEC\u2019s order, which includes more specific details about the charges.<\/p>\n
\u201cTwo NYSE exchanges previously settled rule-filing violations in 2014, and now we\u2019ve found further problems,\u201d said Steven Peikin, Co-Director of the SEC\u2019s Division of Enforcement. \u201cNYSE\u2019s violation of the prior SEC order was a significant factor in assessing the civil penalties in this matter.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
(HedgeCo.Net) The Securities and Exchange Commission has just announced that it 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 […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048],"tags":[],"class_list":["post-62658","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/62658","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=62658"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/62658\/revisions"}],"predecessor-version":[{"id":62659,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/62658\/revisions\/62659"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=62658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=62658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=62658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}