NYSE Regulation and Finra announce joint agreement with US exchanges
New agreement aimed to strengthen surveillance, investigation, and enforcement to prevent insider trading
NEW YORK & WASHINGTON, DC – The nation’s primary self-regulatory organisations for the securities industry – NYSE Regulation and the Financial Industry Regulatory Authority (Finra) – have announced an agreement with 10 US exchanges to strengthen investor protection by consolidating the surveillance, investigation, and enforcement of insider trading in equity securities.
Under the agreement, each exchange gives responsibility for the detection of insider trading to NYSE Regulation for New York Stock Exchange- and NYSE Arca-listed securities. Finra is responsible for Amex- and Nasdaq-listed securities, no matter where trading occurs in the US.
The market centres participating in the agreement, which has been filed with the Securities and Exchange Commission (SEC), are the American Stock Exchange, Boston Stock Exchange, CBOE Stock Exchange, Chicago Stock Exchange, International Securities Exchange, Nasdaq Stock Market, National Stock Exchange, New York Stock Exchange, NYSE Arca, Philadelphia Stock Exchange and FINRA.
“This breakthrough agreement will allow NYSE Regulation and Finra to implement across markets their state-of-the-art insider trading surveillance and investigation programmes for all listed securities in the US," says Richard Ketchum, chief executive officer, NYSE Regulation and chairman of Finra. “A focused, consolidated review strengthens our ability to prevent anyone from profiting from insider information.”
Stephen Luparello, senior executive vice-president of FINRA, says: “While US equity markets have always co-ordinated very well with each other to detect and investigate insider trading, this agreement takes insider-trading surveillance to a new level because it consolidates within Finra and NYSE Regulation what used to be 11 discreet programmes at each market centre. As a result, potential insider traders, whether acting alone or in concert with others, and regardless of where they trade in the US, will be more readily identified in this new, more unified structure.”
Currently, each exchange conducts its own regulatory insider-trading programme and relies upon co-operation with other exchanges when potential insider trading is detected. Both NYSE Regulation and Finra operate highly sophisticated surveillance programmes to identify potential insider trading on a real-time basis. When suspect trading activity is identified, regulatory staff conducts an in-depth review using advanced analytical tools, news reports, and other sources of information.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Dutch regulator in new push on algo manipulation
AFM teams up with Oxford Uni academics to develop data models that will identify “harmful” collusion in automated trading
Fed relief plan for G-Sib agency clearing welcomed
Rollback may revive interest in European FCM model, as principal clearing still treated punitively
Indian initial margin launch brings operational headaches
Conglomerates with multiple entities trading derivatives pose compliance challenges for dealers
Fed’s new liquidity rule spells more pain for regional banks
Limit on HTM assets follows move to deduct unrealised losses from capital buffers
Ruled out: can regulators settle the pre-hedging debate?
Market participants are at odds over the practice and whether regulation or principles can settle the score
SEC streamlines overhaul of stock trading rules
Tick size and access fee rules simplified from first draft, but Peirce still questions rationale
Supervisors use generative AI to tame ‘chaotic’ data
Officials merge credit databases with unstructured reports to sharpen bank oversight, explains Banco de España ex-deputy
EU banks fear loss of NSFR repo relief
European Commission must decide by next June; other jurisdictions adopted softer calibration