A broker-dealer settled NYSE charges for numerous trading violations.
According to the Letter of Acceptance, Waiver and Consent, the broker-dealer:
- effected six trade-throughs, one of which resulted in a loss to the customer, in violation of NYSE American Rules 933NY ("Responsibilities of Floor Brokers"), 963NY ("Priority and Order Allocation Procedures - Open Outcry") and 991NY ("Order Protection");
- failed to expose and announce an agency order, printed the trade at a different price from the announced price, and consummated a transaction at a price different from that instructed by the client, in violation of NYSE American Rules 16 ("Business Conduct"), 922NY ("Trading by ATP Holders on the Floor") and 935NY ("Order Exposure Requirements");
- executed tied hedge trades that did not meet the 500-contract minimum requirement (as a result of its having split a 1,000 share order into 100 unit lots) and failed to properly report the order, in violation of NYSE American Rules 934.3NY ("Solicitation") and 955NY ("Order Format and System Entry Requirements");
- informed a customer that an order had been announced prior to recording that order in the Electronic Order Capture System, in violation of NYSE American Rule 955NY; and
- had inadequate supervisory systems in place, which did not ensure compliance with the above-mentioned rules, in violation of NYSE American Rule 320 ("Offices - Approval, Supervision and Control").
The broker-dealer consented to (i) a censure, (ii) pay a $50,000 fine and (iii) an undertaking to improve its supervisory systems.
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