Economics
SEC Puts Exchanges in Sights Charging CBOE Regulatory Lapses
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Exchange executives, long shielded from legal scrutiny in the U.S., have been put on notice that may be changing after federal regulators fined CBOE Holdings Inc. $6 million for unprecedented lapses in supervision.
The levy, disclosed yesterday in a settlement with the biggest American options venue, marks the third time in nine months the Securities and Exchange Commission has announced financial sanctions against a market operator. Before collecting $5 million from NYSE Euronext in September for data dissemination violations, the commission had never imposed a monetary penalty on an exchange.