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LEGAL NEWSLINE

Friday, April 26, 2024

SEC accuses N.Y. Stock Exchange of regulatory failures

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WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced March 6 that it has charged the New York Stock Exchange (NYSE) and two affiliates exchanges with regulatory failures.

“Exchanges play an important role in protecting investors,” said Stephanie Avakian, co-director of the SEC’s Division of Enforcement, in a statement. “For 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.”

According to the SEC, two NYSE exchanges violated Reg SCI, which the SEC adopted to toughen the technology infrastructure and increase the integrity of the U.S. securities markets.


“Two NYSE exchanges previously settled rule-filing violations in 2014, and now we’ve found further problems,” Steven Peikin, co-director of the SEC’s Division of Enforcement, said in a statement.  “NYSE’s violation of the prior SEC order was a significant factor in assessing the civil penalties in this matter.”

Handling the case for the SEC were Charu A. Chandrasekhar, Susan Cooke Anderson, Nicholas Chung, Alice Liu Jensen, Ainsley Kerr, Mandy Sturmfelz, Steven D. Buchholz, Michele T. Perillo, Diana K. Tani, Kristin M. Pauley, and Sheldon L. Pollock. Robert A. Cohen and Sanjay Wadhwa provided supervision.

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