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| 2001 News and Press Releases |
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HEADLINE ARCHIVED:
Work Place SEC Reviews NYSE Broker Supervision Regulation: Report Says Exchange Failed To Monitor Floor Members Under Terms Of A 1999 Settlement
By: Philip Boroff
Los Angeles Times. Monday, October 15, 2001
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Excerpt: The Securities and Exchange Commission found that the New York Stock Exchange failed to supervise floor brokers under the terms of a 1999 settlement. The world's largest stock exchange didn't conduct "ongoing, continuous surveillance of all floor members," according to a 10-page SEC report submitted to Congress. … The SEC had rebuked the NYSE for a breakdown in supervision that enabled floor brokers to profit illegally by sharing in customers' gains. NYSE Chairman Richard Grasso had pledged to initiate a more constant review of members on the floor within a year of the exchange's June 29, 1999, settlement with the SEC. "Floor brokers have an awful lot of discretion and you do want some kind of presence to respond to inquiries and detect something as it was occurring rather than wait for an issue to surface months later," said John Coffee, a Columbia University law professor.
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