- within Intellectual Property, International Law, Food, Drugs, Healthcare and Life Sciences topic(s)
A firm operating a NYSE floor broker business settled NYSE charges for failing to detect that the firm's floor brokers entered competing orders associated with the same parent order.
In a Letter of Acceptance, Waiver and Consent, NYSE determined that two of the firm's floor brokers did not make sure that any open child orders that were associated with one parent order were canceled before sending further orders of the same parent. NYSE stated that the firm routed over 21,000 pairs of competing orders on behalf of the same client, thereby over-representing the client, in violation of NYSE Rule 122 ("Orders with More than One Broker"). NYSE also found that the firm's supervisory system did not include any written supervisory procedures concerning compliance with NYSE Rule 122, in violation of NYSE Rule 3110 ("Supervision").
To settle the charges, the firm agreed to (i) a censure and (ii) a $40,000 fine.
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