An equities market maker settled NYSE Arca charges for "failing to maintain continuous two-sided trading interest."
In a Letter of Acceptance, Waiver, and Consent, NYSE Arca found, in violation of NYSE Arca Rule 7.23-E(a)(1) ("Obligations of Market Makers"), that the market maker had hundreds of thousands of instances of full-day or intraday quoting gaps, as well as several other trading violations. NYSE Arca stated that the firm's gaps could not be justified by excuses of (i) internal technical failures, (ii) corporate symbol modifications, (iii) interruptions resulting from the firm's risk controls or (iv) market volatility resulting from the COVID-19 pandemic.
To settle the charges, the firm agreed to (i) a censure and (ii) a $100,000 fine.
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