NYSE was fined $14 million yesterday by the SEC for five serious violations.  This note will focus on the fifth violation since we think it is the most egregious one: NYSE and American’s Rules Failed to State That Pegging Interest Orders Created Possibility of Detection of Prices of Non-Displayed Depth Liquidity. While we have noted many examples in the past about information leakage by the stock exchanges, this is the first time that the SEC has fined an exchange for leaking confidential client information. Here is what was going on at the NYSE between 2008 and 2015: – Floor brokers were permitted to enter “pegging (more…)

  What is one to do when their monopoly power and cash cows are threatened? Send in the lawyers, that’s what! We love this Jerky Boys clip:  Sue Everybody! Late yesterday, news hit that NASDAQ is suing kind-of upstart stock exchange rival, IEX for patent infringement. Here are a few articles about the lawsuit: WSJ Bloomberg Financial Times Here are some details: NASDAQ says IEX violated seven patents involving end-of-day auctions, how orders are matched in general, and data feed operational details. NASDAQ’s suit seeks to halt IEX’s use of its technology, as well as seeks monetary damages. NASDAQ argues (more…)