NYSE fines specialists $2.8M for trading violations
The Associated Press
Published: January 16, 2007
NEW YORK: The seven "specialist" firms that handle stock trading at the New York Stock Exchange were hit with a combined $2.8 million (€2.2 million) in fines by the Big Board's regulatory arm for what NYSE Regulation officials said were multiple trading violations.
The seven firms include units of New York-based Goldman Sachs Group Inc., LaBranche & Co., Bear Stearns Cos., Charlotte, North Carolina-based Bank of America Corp. and Amsterdam-based Van der Moolen Holding NV, as well as closely-held Kellogg Specialist Group and SIG Specialists.
Each of the firms was censured and fined amounts ranging from $75,000 (€57,902) to $600,000 (€463,213).
The fines deal another blow to the specialists, which already were embarrassed by an earlier, separate batch of big fines resulting from allegations that the firms put their own trading interests ahead of their clients.
On Tuesday, NYSE Regulation, a unit of NYSE Group Inc., said the firms' infractions included the failure to honor the so-called "firm quote" rule. The rule requires specialist firms execute buy or sell orders that are presented to them at prices that are at least as favorable as the NYSE's published bid or offer at the time the orders enter the NYSE's electronic display book.
"It is critically important for firms conducting business on the floor of the New York Stock Exchange to honor the publicly displayed price quotes in the course of buying and selling," said Susan Merrill, NYSE Regulation chief of enforcement. "These commitments are essential elements of the rules that govern trading and are codified in the NYSE Rules and federal securities regulations."
"Banc of America Specialist cooperated fully with the New York Stock Exchange and we're pleased to put this matter behind us," said Shirley Norton, a spokeswoman for the company.
Bear Stearns, Goldman Sachs, SIG Specialists and Kellogg Specialist declined to comment on the fines. A representative of Van der Moolen not immediately be reached. A representative of LaBranche had no immediate comment. |
