NYSE Data Violations Extend Exchanges’ Reputation Woes
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NYSE Euronext’s $5 million penalty over rule violations for giving certain customers trading data before the public delivers a fresh blow to the reputation of securities exchanges.
The New York Stock Exchange sent data through two proprietary feeds to paying customers before relaying the information to the so-called consolidated feed, which sells trade and quote data to the public, the Securities and Exchange Commission said in an administrative order filed yesterday. Investigators are conducting similar reviews of other exchanges, according to two people with knowledge of the probes, which aren’t public.