By - Marcy Gordon
Category - Budget Miami Hotels
Posted By - Inn and Suites In West Miami
 |
| Budget Miami Hotels |
The largest US options exchange will pay a $6 million penalty to settle federal charges it failed to enforce trading rules.
The penalty being paid by the Chicago Board Options Exchange is the first imposed on an exchange for failures of regulatory oversight, the Securities and Exchange Commission said.
The CBOE is a self-regulating organization, like the Nasdaq and the New York Stock Exchange. They are charged with enforcing trading rules. The SEC has broad oversight but leaves day-to-day monitoring to the exchanges and the Financial Industry Regulatory Authority.
The SEC said the CBOE failed, among other things, to prevent abusive short-selling (betting a stock will lose value). Excessive short-selling targeting weak companies can push them into collapse and fan market volatility.
The exchange agreed to take corrective action but neither admitted nor denied wrongdoing. The SEC also censured the exchange. Censure brings the possibility of a stiffer sanction if the alleged violation is repeated.
The settlement came two weeks after the SEC fined the Nasdaq $10 million for computer failures and decisions alleged to have disrupted Facebook’s public stock offering last year.
The penalty being paid by the Chicago Board Options Exchange is the first imposed on an exchange for failures of regulatory oversight, the Securities and Exchange Commission said.
The CBOE is a self-regulating organization, like the Nasdaq and the New York Stock Exchange. They are charged with enforcing trading rules. The SEC has broad oversight but leaves day-to-day monitoring to the exchanges and the Financial Industry Regulatory Authority.
The SEC said the CBOE failed, among other things, to prevent abusive short-selling (betting a stock will lose value). Excessive short-selling targeting weak companies can push them into collapse and fan market volatility.
The exchange agreed to take corrective action but neither admitted nor denied wrongdoing. The SEC also censured the exchange. Censure brings the possibility of a stiffer sanction if the alleged violation is repeated.
The settlement came two weeks after the SEC fined the Nasdaq $10 million for computer failures and decisions alleged to have disrupted Facebook’s public stock offering last year.
No comments:
Post a Comment