NYSE Fines Seven Specialists

Discussion in 'Wall St. News' started by EdgeHunter, Jan 19, 2007.

  1. NYSE Fines Seven Specialists

    NYSE Regulation yesterday announced censures and fines for seven member specialist firms, to the tune $2.8 million total. The fines are the result of multiple trading violations that occurred between 2003 and 2006.

    The firms were fined for breaking the firm quote rule, under which NYSE specialists are required to execute orders presented to them at prices that are at least as favorable as the NYSE's published bid or offer. The specialists firms also failed to honor commitments to buy or sell coming from the Intermarket Trading System. Other violations included failure to maintain written supervisory procedures, failure to display eligible limit orders and improperly executed short sales.



    2.8Mill... drop in the bucket... wonder what the ratio of profit was to that fine...

  2. blast19


    All I know is that a few, if not all, of them probably peed themselves laughing while driving their ferraris to the bank.
  3. gaj


    no, no.

    this is what ACTUALLY happened. seriously.

    bob pisani (cnbc guy on the nyse floor) reported that the nyse had fined seven specialists (the amount you mentioned) and they (ppl on the floor) were upset because (paraphrasing from memory) the firms aren't making anywhere near as much as they used to, specialists on the floor are losing their jobs, and so why would they choose to make this kind of (small) fine in these tough times?

    i heard it, and i would have expected that kind of whining coming from gasparino; pisani usually filters it somewhat.
  4. i would`nt believe a thing that whiny bitch Pisani has to say......i don`t know if there is a more annoying voice in all of journalism than he.

    Pisani has the specialists best interests in mind......not the retail traders.........he`s part of their club,trust me.
  5. No Kidding! Can't believe CNBC keeps him around. Hopefully he disappears with the floor:D
  6. Sheesh.

    Order flow dwarfs all prior time frames. "they" have yet to liquidate tax segregated accounts, meaning yet to be accounted. Once accounted, a/k/a top, why, "they" will be making it on the short side. Probably 3 to 4x faster.

    Fines are a cost of doing business.

    When it comes to stories, I prefer Rapunzel, and how she let her golden hair down. Jack n' Jill's pretty good two......oops, I mean too.
  7. MICHAEL J. GARCIA, the United States Attorney for the Southern District
    of New York, announced that MICHAEL HAYWARD and MICHAEL STERN, former
    registered specialists on the New York Stock Exchange ("NYSE"), were
    each sentenced today to 6 months' imprisonment on charges of federal
    securities fraud. United States District Judge SIDNEY H. STEIN, who
    imposed the sentences, also ordered HAYWARD and STERN each to serve two
    years of supervised release, 320 hours of community service, and to pay
    a $250,000 fine.

    I hate to see anybody go on hard times, but let's face it. Wall St. is out of control, and things have to change. They don't want to make an honest profit; they want all of it, all the time. Hard to have any sympathy. Institutional Desks are dying, too. Tough.
  8. Wow....will CNBC ever mention this ?
    NO WAY !