The Securities and Exchange Commission is dead serious to punish the agencies that cause disruption to market events.
Recently, SEC ordered the New York Stock Exchange to pay $14 million fine for multiple breakdowns and regulatory violations.
The SEC move came after they conducted five separate investigations on Nyse.
These five investigations involves a market-wide outage in 2015 and a chaotic trading day a month later exacerbated by the implementation of price collars without a rule in effect to
permit them – a move that resulted in order imbalances being resolved more slowly.
The SEC also discovered in their investigations that Nyse-operated exchanges broke rules regarding business continuity and disaster recovery in violation of Regulation SCI, which was instituted in an attempt to strengthen the technology infrastructure and integrity of the US securities markets.
Steven Peikin, co-director of the SEC’s Division of Enforcement further explained Nyse’s violation of the prior SEC order was a significant factor in assessing the civil penalties in this matter.