Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Ashton Technology (ASTN) -- Ignore unavailable to you. Want to Upgrade?

To: mst2000 who wrote (2222)	7/29/1999 7:03:00 PM
From: AJ Berger	Read Replies (1) \| Respond to of 4443

I'm leaving a GTC buy order in at $10 now that 07/28/99 date filing from Philly tells me we may be ready to go. The Nasdeq and NYSE going public only show how scared sh!tless they are of all ECN's getting stock play appreciation, while they lose business and grow worth less. All these exchanges wanna cash in before the ECN stock steal the show. Sideliners should start accumulating.

To: mst2000 who wrote (2222)	7/29/1999 7:46:00 PM
From: EyeDrMike	Read Replies (1) \| Respond to of 4443

sec.gov ENFORCEMENT PROCEEDINGS PUBLIC PROCEEDINGS INSTITUTED AGAINST THE NEW YORK STOCK EXCHANGE The Commission announced today that it instituted public administrative proceedings against the New York Stock Exchange, Inc. (NYSE) and simultaneously accepted the NYSE's offer to settle those proceedings. In its administrative order, the Commission finds that the NYSE violated Section 19(g) of the Securities Exchange Act of 1934 (Exchange Act) by failing to enforce compliance with federal securities laws and NYSE rules prohibiting proprietary and on-floor trading by NYSE floor broker members - Section 11(a) of the Exchange Act and Rule 11a-1 thereunder, and NYSE Rules 90, 95 and 111. Without admitting or denying the Commission's findings, the NYSE has consented to the entry of the Commission's Order and undertaken to implement various remedial measures for its floor broker regulatory program and floor trading operations. In the Order, the Commission found that: The NYSE failed, from 1993-98, to uncover and halt illegal schemes in which groups of independent NYSE floor brokers effected and initiated trades from the NYSE floor in exchange for a share of the trading profits and losses. Those schemes violate Section 11(a) of the Exchange Act and Rule 11a-1, and related NYSE rules, which (with certain exceptions) prohibit NYSE members from executing trades for their own accounts, accounts in which they have an interest, and accounts over which they exercise investment discretion. These provisions aim to prevent independent floor brokers from exploiting their advantageous position on the NYSE floor for personal gain to the detriment of the investing public. The NYSE failed to uncover, among other things, one particular scheme through which floor brokers received $11.1 million in unlawful profits by effecting and initiating trades through a non-NYSE member broker-dealer, the Oakford Corporation. To date, nine of these Oakford floor brokers have pleaded guilty to criminal charges arising from their unlawful trading, and three have settled civil charges brought by the Commission. The United States Attorney for the Southern District of New York has stated that these nine defendants are among at least 64 NYSE floor brokers who participated in profit-sharing arrangements until 1998. The NYSE's floor broker regulatory program suffered from two major deficiencies: (1) The NYSE failed to take appropriate action to police for profit-sharing or other performance-based compensation of independent floor brokers. Since 1991, the NYSE understood that if an independent floor broker were to share in the profitability of an account, the independent floor broker executing orders for that account on the NYSE floor might violate Section 11(a)(1) of the Exchange Act and Rule 11a-1 unless it could claim entitlement to an applicable exemption. Yet, the NYSE did not implement a surveillance that would detect and ultimately prevent these arrangements. (2) The NYSE suspended its routine independent floor broker surveillance for extensive periods of time, the longest of which lasted for two-years, between 1995 and 1997. Although the NYSE continued to investigate tips and complaints about floor brokers during these periods of suspension, this was not an appropriate substitute for a routine surveillance program and the NYSE should have devoted sufficient resources to conduct surveillance and investigations simultaneously. Also, the NYSE's efforts to follow-up on tips and complaints were limited in scope and did not detect the wrongdoing in Oakford. The Order directs the NYSE to comply with several remedial undertakings, including: * Improve Surveillance of Floor Members: The NYSE will conduct biennial examinations of all floor members, maintain random surveillance of floor members beyond that, and ensure adequate staffing. Under the supervision of an Independent Committee of its Board of Directors, the NYSE will create new procedures manuals for surveillance, examination, and investigation of floor members. * Comprehensive Review of NYSE Rules and Procedures: The NYSE will retain an independent consultant to study its rules and regulatory procedures, and report the conclusions of that study and suggested amendments to the NYSE's Board of Directors. * Electronic Order Capture: The NYSE will develop and implement systems for the electronic capture of orders prior to transmission to and representation on the floor through execution. * Education Program: The NYSE will ensure that its members receive adequate education concerning obligations and prohibitions under the securities laws and NYSE rules. * Internal Audit: The NYSE will maintain its Regulatory Quality Review Department as a substantial, independent, internal audit staff. For more information, see Litigation Release Nos. 15653 and 15743. (Rel. 34-41574; File No. 3-9925; Press Rel. 99-72)