- within Intellectual Property, International Law, Litigation and Mediation & Arbitration topic(s)
A broker-dealer settled NYSE Arca, Inc. ("NYSE Arca") charges for executing options orders that contained inaccurate origin codes.
In a Letter of Acceptance, Waiver and Consent, NYSE Arca stated that, following the exchange's adoption of a "Professional Customer" origin code, the broker-dealer failed to reconfigure its order-routing connections with NYSE Arca to transmit the "Professional Customer" designation in orders for which it was applicable. (The NYSE ARCA defines a "Professional Customer" as a firm that, on average, places more than a set number of orders a day.) As a result of the broker-dealer's failure to upgrade its trade reporting technology, the broker-dealer violated NYSE Arca Rule 6.69-O ("Reporting Duties") by failing to transmit the orders in the "form and manner prescribed by [NYSE Arca]."
To settle the charges, the broker-dealer agreed to (i) a censure and (ii) a $237,000 fine.
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