NYSE Fined by SEC for Giving Head-Start in Market Data

NYSE Euronext, has announced that it has reached a settlement agreement with the SEC relating primarily to alleged violations by New York Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term LLC of Rule 603(a) of Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term NMS, a rule governing the timing of delivery of certain exchange market data. The SEC also alleged that NYSE failed to retain certain computer files in violation of SEC record-keeping requirements. NYSE Euronext entered into the settlement without admitting or denying the SEC's allegations. In accordance with the settlement, NYSE Euronext has agreed to pay a $5 million fine, to retain an independent consultant to evaluate NYSE Euronext's U.S. exchanges' current Rule 603(a) compliance systems, and to implement the consultant's recommended improvements.

The SEC's allegations focused primarily on differentials in the speed of NYSE's delivery of market data from 2008 through mid-2010. The SEC alleged that, at certain times during that period, NYSE delivered market data through two proprietary data feeds slightly faster than it delivered market data to the consolidated tape. The alleged timing differentials, which were generally at the level of milliseconds, were the result of technology issues that have been resolved.

The SEC does not allege any intentional misconduct or that the NYSE data delays caused any investor harm. NYSE completed systems modifications in 2010 and 2011 that eliminated the technology issues that were the subject of the investigation. NYSE also now preserves the computer files that were the subject of the records-retention charge.

NYSE Euronext Chief Executive Officer Duncan L. Niederauer said, "NYSE Euronext is committed to the highest standards of integrity and accountability. The timing differentials stemmed from technology issues, not from intentional wrongdoing by the exchange or any of its personnel.

"NYSE Euronext is pleased to have this matter resolved, and believes that the settlement is in the best interest of its shareowners, clients and employees. We will continue to take every responsible measure to ensure that our market operates with the utmost fairness and transparency."