From www.traderbulletin.com Fleet Specialist Fined The NYSE has fined Fleet Specialist $150,000, and specialist Michael Bonnano $25,000. Fleet Specialist was charged with failing to promptly publish bids and offers that would have improved the market. Many times, Fleet would reportedly wait a full 28 seconds before the NYSEâs automated âlast resortâ system would post tradersâ bids and offers for them. Bonnano was charged with abdicating his responsibility to maintain an orderly market (i.e. buy stock) in General Motors. On June 27, 2002 General Motors sold off six percent in three minutes amid rumors of an accounting investigation. Instead of buying stock, Bonnano reportedly sold 10,000 shares. Bonnano, who apparently still works for Fleet, has been moved to a different stock. Some analysts think Fleet may decide to sell Fleet Specialist, which is a very small part of its business. These fines are unrelated to the NYSEâs ongoing specialist investigation. Trader Bulletin 6:18 PM Discuss (1 response) Instead of buying stock, Bonnano reportedly sold 10,000 shares. This is so NYSE. Do you really want to trust these guys with penny spreads. They are front running daytrading worms. LaBranche Defies NYSE In a rare confrontation with regulators, LaBranche is refusing to turn over specialist emails to the NYSE. The firm says the emails are personal and irrelevant to the NYSEâs specialist investigation. Reuters has previously quoted NYSE Chairman Richard Grasso as saying, âIn my system, (of self-regulation) you cannot raise your hand and elect your Fifth Amendment privilege. Any question my prosecutors ask you, you either answer, or you are a former member of the New York Stock Exchange that moment. There is no such thing as constitutional rights.â The news is yet another black eye for the NYSE and observers are awaiting the NYSEâs official response. LaBranche, which is the NYSEâs largest specialist, says it will contest the action and respond by August 12. LaBranche has already turned over thousands of business-related emails and offered to let a third party decide if the emails are relevant. The NYSE has refused that offer. Trader Bulletin 6:17 PM Discuss
From what I understand, the NYSE does not keep the right kind of data in their audit trail to bust crooked specialists (surprise, surprise). So when they say they will open their books to prove there is no shenanigans going on - they know that the regulators can't piece enough together to prove anyone did anything wrong. Instead they will get some low level guys to agree to some small fine (small compared to what they steal) and hope the whole thing goes away. The SEC needs to mandate that the NYSE keep the right kind of data in their audit trail.
The US law system must be a joke itself. A Kazaa user would be fined $150.000 for each offered song, and this whole firm gets exactly the same treatment for abusing a market system and damaging thousands of investors. HAHAHAHA
25K fine for a cheat specialist. wow, what a deterrence to others. oh wait. he had to move to another stock. f*cker prolly pockets close to mid - to - upper 6 figures.
what I always said. the NYSE fools you. with their monopoly style they think they can fool everyone. boycott the NYSE.
This is just a tip of the iceburg. Specialists are just exposed at the front. Think of huge institutions, exchanges, and brokers run in front of investor publics and take advantage from penny to dollar of investors using crooked rules, fees and tactics we may never think of or understand. "They" do these things all the time, all the time, all the time!!! No More. This post cannot be deleted.