Exclusive: NYSE in Talks With SEC to Settle Data Probe
The New York Stock Exchange said on Monday it is in talks with U.S. securities regulators to settle allegations that the exchange violated rules intended to promote fair competition.
The Securities and Exchange Commission’s investigation centers on a regulation that prohibits an exchange from sending out data on a private feed to certain clients faster than on public data feeds.
The company confirmed the negotiations after Reuters reported on the settlement talks earlier on Monday, citing people familiar with the matter. Those people spoke anonymously because the probe had not been made public.
“NYSE Euronext has been working with the SEC to resolve alleged violations of Rule 603(a) of Regulation NMS, a technical rule governing the timing of delivery of certain exchange market data,” the company confirmed in a statement. “The company does not expect that any settlement of this matter will be material.”
The case stems from an alleged violation of the regulation that governs the dissemination of market information, known as Regulation NMS, or national market system.
It is still unclear whether the SEC will ask NYSE to pay a fine to resolve the allegations. The case is still likely a few months away from being completed, people familiar with the matter told Reuters earlier on Monday.