- within Intellectual Property, International Law, Food, Drugs, Healthcare and Life Sciences topic(s)
A firm settled NYSE charges for maintaining competing orders from the same customer by two floor brokers.
In a Letter of Acceptance, Waiver, and Consent, NYSE stated that while one of the firm's floor brokers ("Broker 1") was routing the orders of a customer, another floor broker ("Broker 2") received buy orders from that same customer. NYSE found that rather than notifying Broker 1, who was assigned to the customer in question that day, Broker 2 routed the orders to the market. This resulted in the broker-dealer's routing of thousands of competing "child orders" from the same customer over the same period of time, in violation of NYSE Rule 122 ("Orders with More than One Broker"). NYSE also found that the broker-dealer lacked written supervisory procedures specific to NYSE Rule 122, in violation of NYSE Rule 3110(b) ("Written Procedures").
To settle the charges, the broker-dealer agreed to (i) a censure and (ii) a $17,500 fine.
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