The Securities and Exchange Commission says it charged the New York Stock Exchange and two affiliated exchanges with “regulatory failures tied to several disruptive market events.”
NYSE, NYSE Arca and NYSE American agreed to pay a $14 million fine connected with the charges, which include the first violations of the Regulation Systems Compliance and Integrity rules (or Reg SCI) — adopted by the SEC in 2014.
According to the SEC, two NYSE exchanges were charged with violating Reg SCI’s business continuity and disaster recovery requirement. For instance, the exchanges wrongly staged a marketwide regulatory halt, negligently misrepresented stock prices as ”automated” and applied price collars during unusual volatility on Aug. 24, 2015, the agency says.
”Exchanges play an important role in protecting investors,” explained Stephanie Avakian, co-director of the SEC’s Enforcement Division, in a statement. ”For retail investors to have confidence in our markets, exchanges must provide accurate information and comply with legal requirements, including being equipped for unexpected market disruptions.”