WASHINGTON (CN) - The New York Stock Exchange and affiliates will pay $4.5 million for failing to comply with SEC rules for "self-regulatory organizations," the SEC said Thursday in a settled complaint.
The settled complaint and cease and desist order was filed against the New York Stock Exchange LLC, NYSE Arca Inc., NYSE MKT LLC fka NYSE Amex, and Archipelago Securities LLC.
"(T)he NYSE exchanges repeatedly engaged in business practices that either violated exchange rules or required a rule when the exchanges had none in effect," the SEC said in a statement announcing the settlement. "For example, all of the NYSE exchanges used an error account maintained at Archipelago Securities to trade out of securities positions taken on as a result of their operations despite not having rules in effect that permitted them to maintain and use such an account. In another example, NYSE Arca failed to execute a certain type of limit order under specified market conditions despite having a rule in effect that stated that NYSE Arca would execute such orders."