- within Intellectual Property, International Law, Food, Drugs, Healthcare and Life Sciences topic(s)
A full-service broker-dealer firm settled NYSE charges for routing competing orders for the same security at the same price, for the account of the same principal, to two different floor brokers. The firm also settled related charges for maintaining an inadequate supervisory system that was not designed to prevent such competing orders.
In a Letter of Acceptance, Waiver, and Consent, NYSE found that a firm trader routed "two competing parent orders on behalf of two different portfolios managed by the same advisor to two different floor broker firms," resulting in orders executed at the same time and price on behalf of the same customers. NYSE stated that these executions were in contravention, "albeit unintentionally," of NYSE Rule 122 ("Orders with More than One Broker").
Furthermore, NYSE found that the firm did not maintain written supervisory procedures addressing NYSE Rule 122, in violation of NYSE Rule 3110 ("Supervision").
To settle the charges, the firm agreed to (i) a censure and (ii) a $25,000 fine.
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