NYSE Regulation, the regulatory body of the NYSE Group Inc., has hit four firms and 12 individuals with disciplinary actions.
Morgan Stanley was censured and ordered to pay a USD500,000 fine for submitting inaccurate monthly reports of short positions in securities listed on the NYSE and for supervisory and internal control violations in connection with NYSE short-interest reporting requirements.
The New York-based firm also failed to report similar positions to the American Stock Exchange, and since 1986 failed to report some positions in equity securities to NASD.
The fine will be split among the NYSE, NASD and the American Stock Exchange. New York based First Albany Capital Inc. was also fined USD100,000 for failing to maintain adequate written policies and procedures to address supervision of branch office managers who manage customer accounts.
St. Louis-based Stifel, Nicolaus & Co. was fined USD100,000 for improperly disclosing customer data to a third party without entering an agreement with that party, and for inadequate disclosure.
The regulator also fined New York-based market maker SIG Brokerage LP USD50,000 for improperly entering orders. Each of the firms agreed to the findings without admitting or denying any wrongdoing.