NYSE Regulation, Inc.

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NYSE Regulation, Inc.
Headquarters New York, NY USA
Key People Richard G. Ketchum
Website www.nyseregulation.com

NYSE Regulation, Inc. is an independent not-for-profit corporation dedicated to strengthening market integrity and investor protection. A subsidiary of NYSE, the organization consists of three divisions: market surveillance, enforcement and risk, and listed company compliance.[1] NYSE Regulation's board of directors is composed of a majority of directors unaffiliated with any other NYSE board. As a result, NYSE Regulation is independent in its decision-making.[2]

History[edit]

On July 30, 2007, NYSE Regulation’s member regulation oversight functions were consolidated with NASD to form the Financial Industry Regulatory Authority (FINRA).[3]

NYSE Regulation outsourced its market surveillance and enforcement functions to FINRA in 2010, while retaining an oversight role and continuing to ensure that NYSE-listed companies comply with listing standards.

On October 6, 2014, NYSE Group said it would take back the majority of the policing duties for its two U.S. options exchanges and three stock markets from FINRA at the end of 2015. FINRA will continue to conduct cross-market surveillance for NYSE, which incorporates data from other exchanges to spot abusive trading patterns. It will also continue to conduct the registration, testing, and examinations of broker-dealer members of NYSE's exchanges,[4] but it will hand over the other oversight services to NYSE Regulation.[5]

NYSE Regulation will use Cinnober's technology platform and surveillance tools. The platform uses real-time data and provides the ability to play back trading events and to explore cross-market activity.[6]

Trading violations that occur on or through the systems and facilities of the NYSE Group continue to be investigated and prosecuted by NYSE Regulation’s Enforcement division.

The NYSE Regulation board of directors is composed of three NYSE Euronext directors, six otherwise unaffiliated with NYSE Euronext, and the NYSE Regulation CEO. The CEO of NYSE Regulation has primary responsibility for the regulatory oversight of the U.S. market subsidiaries within NYSE Euronext and reports solely to the NYSE Regulation board of directors.

The regulation board oversees all compensation decisions for Regulation employees and the nomination of directors to the Board of Regulation. When it comes to disciplinary actions, the decisions of NYSE Regulation and its board of directors are final, although subject to appeal to the Securities and Exchange Commission.

Technology[edit]

In October 2014 NYSE Regulation said it had chosen to implement market surveillance technology developed and powered by Scila in Stockholm for NYSE Group’s equities and options exchanges, including the New York Stock Exchange.[7]

Board of Directors[edit]

References[edit]