SEC v. New York Stock Exchange LLC, NYSE American LLC and NYSE Arca, Inc. (2018)
Settled
Checked against the primary document on October 3, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.
In March 2018 the SEC settled with three NYSE exchanges over several episodes in which they operated without effective rules or outside their rules, including a 2015 shutdown during which quotes were wrongly marked as automated, agreeing to pay a joint $14 million penalty. The case does not concern a benchmark.
The record
| Agency | SEC |
|---|---|
| Release number | 3-18388 |
| Date filed | 2018-03-06 |
| Date resolved | 2018-03-06 |
| Status | settled |
| Asset class | equities |
| Venue | NYSE, Nasdaq |
| Criminal parallel | No |
| Defendants | New York Stock Exchange LLC ; NYSE American LLC ; NYSE Arca, Inc. |
| Also named elsewhere | New York Stock Exchange LLC ; NYSE Arca, Inc. |
| Cited as charged or alleged | Securities Act s.17(a) |
| Techniques |
What was ordered
- Civil penalty
- $14m
- Disgorgement
- —
- Prejudgment interest
- —
- Total relief
- $14m
- Alleged gain
- —
What is alleged to have happened
The Securities and Exchange Commission instituted and settled this proceeding on March 6, 2018 (Securities Act release 10463), without admission or denial by the exchanges.
The order finds that NYSE and NYSE American disseminated quotations marked automated during connectivity failures before a three-and-a-half hour shutdown on July 8, 2015, which were negligent misrepresentations under Section 17(a)(2) of the Securities Act. It also finds that Arca applied price collars to reopening auctions without a rule providing for them during the August 24, 2015 volatility, and that Arca erroneously implemented a market-wide halt on March 31, 2015. These are exchange rule and compliance failures, not rate rigging.
The record carried a benchmark-submission tag that nothing in the order supports, so it now has none. The respondents were ordered to pay a joint and several civil money penalty of $14 million within 14 days; the record had shown no amount.
For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.
Timeline
Primary documents
Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.