Maybe we should recall some ET members why Credit Suisse was fined for 6 month ago : Case Note Violated NYSE Rule 342 by failing to adequately supervise development, deployment and operation of proprietary algorithm, including failure to implement procedures to monitor certain modifications made to algorithm; violated NYSE Rule 401 by failing to adhere to principles of good business practice in that: (i) firm proprietary algorithm did not have appropriate checks designed to prevent submission of hundreds of thousands of erroneous messages or to alert Firm in event of rejected messages; (ii) firm proprietary algorithm sent hundreds of thousands of cancel and replace requests for orders that had not been sent to NYSE; and/or (iii) firm failed to detect hundreds of thousands of cancel and replace requests and reject messages â Consent to censure and $150,000 fine. Case Summary Credit Suisse Securities (USA) LLC of New York City, a member firm, consented without admitting or denying guilt to failing to adhere to principles of good business practice: An NYSE hearing officer found that Credit Suisse failed to adhere to the principles of good business practice in that on Nov. 14, 2007, beginning at approximately 3:40 p.m., a Credit Suisse proprietary algorithm routed hundreds of thousands of cancel/replace requests to the New York Stock Exchange for orders that had been previously generated by the algorithm, but, due to an unforeseen programming issue, were never sent by the algorithm. The unusually large amount of cancel/replace messages contributed to the over-queuing of message traffic in all of the securities, approximately 975 in total, traded at five posts on the NYSE Trading Floor. Messages, including new orders, modifications of orders, and cancellation requests were frozen in queue and could not be immediately processed. These five posts could not be closed on time, ultimately closing between 4:10 p.m. and 4:27 p.m. Credit Suisse violated NYSE Rule 342 by failing to properly supervise the development and implementation of the firmâs proprietary algorithm, particularly with respect to certain revisions to the algorithm that contributed to the Nov. 14 incident. The firm also failed to properly monitor the operation of the algorithm, as evidenced by the fact that the firm was unaware that hundreds of thousands of messages sent by the algorithm were being rejected by NYSE systems until being notified of the issue by NYSE Regulation the following day. These failures by the firm also constituted a bad business practice in violation of NYSE Rule 401. The NYSE imposed a penalty of a censure and $150,000 fine. Credit Suisse Securities (USA) LLC consented to the penalty. http://www.nyse.com/DiscAxn/discAxn_01_2010.html consented without admitting or denying guilt.... This is malpractice between SEC/Exchanges/other regulatory authorities and Wall Street. Why do you pay a fine then if you are "NOT GUILTY" ? Hum ?
You're completely making my point while thinking you're doing the opposite. Unless I'm misreading you, you're saying they're paying the fine without admitting guilt but they actually sent tons of messages on purpose. Sorry, but that's a joke. CSFB is a top-tier algo shop: they make a LOT of money doing things well. Again, I'll make the casino analogy: anyone who does really well legally has no reason to cheat. The real goose that lays the golden eggs doesn't involve breaking laws or rules. How in the world would/could they benefit by screwing up NYSE's closing process? And in such a heavy-handed, obvious way?