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

ADVERTISEMENT
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.

More in Finance

SEC fines bitcoin stock exchange owner

Read more »