In Landmark Action, NYSE Settles with SEC Over Data Feed Allegations
![duncan-niederauer-nyse-db duncan-niederauer-nyse-db](/sites/default/files/styles/landscape_750_463/public/import/IMG/213/163213/duncan-niederauer-nyse-db-580x358.jpg.webp?itok=QlsZIu64)
Beginning in 2008 and extending through the middle of 2010, NYSE was found to have sent data through two proprietary feeds before making that data public, owing to insufficient monitoring of data transmission.
Regulation NMS (National Market System), the set of SEC rules pertinent to the action, disallows the sending of market data to customers before it is included in consolidated feeds, which distribute data of trades and quotes to the public. NYSE Euronext points out that the resulting improper head start was, in most cases, measurable in milliseconds.
The settlement brings an end to an action that was the first of its kind brought against an exchange. "The violations at NYSE may have been technological, but they were not technical. Robust technology governance is just as important to preventing investor harm as any other compliance or supervisory function," says Daniel M. Hawke, Chief of the SEC Enforcement Division's Market Abuse Unit.
"NYSE Euronext is pleased to have this matter resolved, and believes that the settlement is in the best interest of its shareowners, clients and employees. We will continue to take every responsible measure to ensure that our market operates with the utmost fairness and transparency," says the exchange operator's CEO, Duncan Niederauer.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
OneTick taps HFT start-up Lo:Tech for crypto market data
Lo:Tech’s founders come from the quant and high-frequency trading space.
JSE rolls out exchange data to cloud Marketplace, built with DataBP
The move—part of a broader cloud migration at the exchange—allows financial firms to connect and subscribe to JSE news, market data, and analytics via the cloud.
Bloomberg launches alt data-driven consumer spend index
The combination of alternative data and traditional macroeconomic data will provide insights into a key component of the US economy, as demonstrated by the data’s use by Chicago’s Federal Reserve Bank.
Kepler Cheuvreux builds proprietary execution platform with Adaptive
The broker wants to move away from third-party technologies as DORA’s risk management requirements could make vendor relationships more cumbersome.
Industry seeks to avoid future clashes over data costs
The IMD Wrap: Max wonders when and why buying data became a blood sport.
Facing platform shutdown, former IEX Cloud head buys its assets in 11th-hour bid
Tim Baker, Pedro Aguayo, and a silent partner have come together to purchase IEX Cloud’s assets days before the exchange was to retire all its products on August 31.
New working group to create open framework for managing rising market data costs
Substantive Research is putting together a working group of market data-consuming firms with the aim of crafting quantitative metrics for market data cost avoidance.
Off-channel messaging (and regulators) still a massive headache for banks
Waters Wrap: Anthony wonders why US regulators are waging a war using fines, while European regulators have chosen a less draconian path.