Wednesday August 8, 2012
NYSE in talks with SEC to settle data investigation
WASHINGTON: The New York Stock Exchange (NYSE) said on Monday it was in talks with US securities regulators to settle allegations the exchange violated rules intended to promote fair competition.
The Securities and Exchange Commission's (SEC) investigation centres on a regulation that prohibits an exchange from sending out data on a private feed to certain clients more quickly than on public data feeds.
NYSE Euronext, which operates the NYSE, confirmed the negotiations after Reuters reported on the settlement talks earlier on Monday, citing people familiar with the matter. Those people spoke anonymously because the probe had not been made public.
“NYSE Euronext has been working with the SEC to resolve alleged violations of Rule 603(a) of Regulation NMS, a technical rule governing the timing of delivery of certain exchange market data,” the company confirmed in a statement. “The company does not expect that any settlement of this matter will be material.”
The case stems from an alleged violation of the regulation that governs the dissemination of market information, known as Regulation NMS, or national market system.
It is unclear whether the SEC will ask NYSE to pay a fine to resolve the allegations. The case was likely a few months away from being completed, people familiar with the matter said.
The settlement talks come during a period of renewed SEC focus on the vulnerability of the markets to superfast computer-driven trading and fears that some market participants are getting an unfair advantage. Reuters