cyprus talinec holdings news:NYSE Euronext Fine, Automated Systems, Cyprus: Compliance by frexymillsman

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									   Cyprus Talinec
   Holdings News
NYSE Euronext Fine, Automated
 Systems, Cyprus: Compliance
NYSE Euronext (NYX), the biggest U.S. exchange operator,
will pay $5 million to resolve regulatory claims that the
New York Stock Exchange violated rules by giving certain
customers a head start on trading information.
The NYSE sent data through two proprietary feeds to
paying customers before relaying the information to the
so-called consolidated feed, which distributes trade and
quote data to the public, the Securities and Exchange
Commission said in an administrative order filed Sept. 14.
Investigators are conducting similar reviews of other
exchanges, according to two people with knowledge of the
probes, which aren’t public.
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. NYSE’s practice was
discovered in the SEC’s investigation of the so- called flash crash
of May 2010, in which $862 billion was erased from equity prices
in 20 minutes before recovering.
The practice violated Regulation NMS, which obliges exchanges
to give the public fair access to market information, the SEC said.
The NYSE violated SEC rules “over an extended period of time”
starting in 2008 by failing to monitor the speed of its proprietary
feeds compared to the consolidated feed, the agency said in its
order.
• The violations stemmed from technology issues in NYSE’s Open
  Book Ultra and PDP Quotes proprietary data feeds, according to the
  SEC.
• “The timing differentials stemmed from technology issues, not from
  intentional wrongdoing by the exchange or any of its personnel,”
  NYSE Euronext Chief Executive Officer Duncan Niederauer said in a
  statement. The company, which operates exchanges 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 Market’s
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 SEC’s
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 NYSE’s practice
was discovered in the SEC’s investigation of the so-
called flash crash of May 2010, in which $862 billion
was erased from equity prices in 20 minutes before
recovering.

								
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