NYSE Regulation, Inc. has censured and fined seven of its member organizations a total of $2.8 million for multiple trading violations, including failure to honour firm quote obligations.
The firms were also censured and fined for their lack of written supervisory procedures that relate to the firm rule that requires firms to execute, buy or sell orders that are presented to them at prices that are favourable to the NYSE’s published bid or the offer at the time the order is entered into the Exchange’s electronic display book.
“It is critically important for firms conducting business on the floor of the New York Stock Exchange to honour the publicly displayed price quotes in the course of buying and selling,” says Susan Merrill, NYSE Regulation chief of enforcement. “These commitments are essential elements of the rules that govern trading and are codified in the NYSE Rules and federal securities regulations.”