Chicago Stock Exchange to pay $300,000 to settle SEC charges

Additionally, the exchange failed to make sure that members were complying with its own rules, the SEC charged.

The Chicago Stock Exchange will pay $300,000 to settle the claims.

The violations started, according to the SEC, when the exchange eliminated its physical trading floor in December, 2006, and converted to a fully automated platform. A system it implemented allowed brokers to use “stale” prices to execute transactions, “due to the flawed implementation of the system” according to the SEC.

That amounted to a violation of federal regulations.

The exchange is a relatively small one, with just about 0.4 percent of national equities trading.

In settling the charges with the SEC, the Chicago Stock Exchange neither admitted nor denied the allegations.

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