NYSE Euronext Fine, Automated Systems, Cyprus: Compliance l Vimeo


changes in the U.S. and Europe, will ensure that our market operates with the utmost fairness and transparency, he said.
While the SEC has previously faulted exchanges for misconduct by employees, the Sept. 14 action marks the first time the agency has fined an exchange for having faulty systems that violated securities rules.
The SEC action follows the Nasdaq Stock Markets flubbed initial public offering of Facebook Inc. (FB) in May and Bats Global Markets Inc.s withdrawal of its IPO after a technology glitch in March, both of which undercut investor confidence that exchanges are in command of their technology systems. The agency is considering a new rule to mandate that exchanges and possibly brokers employ adequate automated systems to operate their markets and related platforms, according to Dave Shillman, an executive in the SECs trading and markets division.
The SEC penalty, the first of its kind against an exchange, comes as lawmakers and regulators question whether retail investors are being harmed in an increasingly fragmented marketplace of high-speed, computer-driven trading. The NYSEs practice was discovered in the SECs investigation of the so- called flash crash of May 2010, in which $862 billion was erased from equity prices in 20 minutes before recovering.

Read more: http://www.bloomberg.com/news/2012-09-17/nyse-euronext-fine-automated-systems-cyprus-talks-compliance.html

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