Post by Sapphire Capital on Jul 16, 2008 20:53:46 GMT 4
NYSE Regulation, Inc. Board of Directors Reverses Hearing Board Decision
Unnamed Floor Broker X
Hearing Board Decision: 07-148
09 Jul 2008
Summary Back to Top
Case Note
On appeal, the NYSE Regulation, Inc. Board of Directors reversed an NYSE Hearing Board decision regarding unnamed floor broker X (“Respondent”).
Case Summary
This case relates to trading on August 21, 2003, when Respondent sold 50,000 shares of a stock for a hedge fund and, in so doing, elected a previously disclosed stop order. Shortly thereafter, the Respondent purchased 500,000 shares of that stock for the same hedge fund. In so doing, the Respondent elected a previously disclosed stop order. The NYSE Hearing Panel decision below granted summary judgment for NYSE Regulation's Enforcement division on Charge II that alleged Respondent violated NYSE 476(a)(6). Charge I, which alleged a violation of NYSE Rule 435(3), was dismissed. The Hearing Panel imposed a censure and a $5,000 fine concluding that Respondent’s actions “constituted a one-time error in professional judgment by an otherwise conscientious, well-regarded Floor broker with a spotless regulatory and disciplinary record.”
On May 13, 2008 the NYSE Committee for Review (“CFR”) convened to hear oral argument of the parties. In accordance with NYSE Rule 476(f), after a consideration of the Record in this matter, written submissions filed by the parties and oral argument, the CFR recommended to the NYSE Regulation Board of Directors (“the Board”) that it:
deny Enforcement’s appeal of the dismissal of Charge I
grant summary judgment in Respondent’s favor on Charge I
reverse the finding of liability on Charge II
grant summary judgment in Respondent’s favor on Charge II
vacate the penalty imposed by the Hearing Panel
The Board voted to approve the CFR’s recommendation
www.nyse.com/pdfs/07-148.PDF
Unnamed Floor Broker X
Hearing Board Decision: 07-148
09 Jul 2008
Summary Back to Top
Case Note
On appeal, the NYSE Regulation, Inc. Board of Directors reversed an NYSE Hearing Board decision regarding unnamed floor broker X (“Respondent”).
Case Summary
This case relates to trading on August 21, 2003, when Respondent sold 50,000 shares of a stock for a hedge fund and, in so doing, elected a previously disclosed stop order. Shortly thereafter, the Respondent purchased 500,000 shares of that stock for the same hedge fund. In so doing, the Respondent elected a previously disclosed stop order. The NYSE Hearing Panel decision below granted summary judgment for NYSE Regulation's Enforcement division on Charge II that alleged Respondent violated NYSE 476(a)(6). Charge I, which alleged a violation of NYSE Rule 435(3), was dismissed. The Hearing Panel imposed a censure and a $5,000 fine concluding that Respondent’s actions “constituted a one-time error in professional judgment by an otherwise conscientious, well-regarded Floor broker with a spotless regulatory and disciplinary record.”
On May 13, 2008 the NYSE Committee for Review (“CFR”) convened to hear oral argument of the parties. In accordance with NYSE Rule 476(f), after a consideration of the Record in this matter, written submissions filed by the parties and oral argument, the CFR recommended to the NYSE Regulation Board of Directors (“the Board”) that it:
deny Enforcement’s appeal of the dismissal of Charge I
grant summary judgment in Respondent’s favor on Charge I
reverse the finding of liability on Charge II
grant summary judgment in Respondent’s favor on Charge II
vacate the penalty imposed by the Hearing Panel
The Board voted to approve the CFR’s recommendation
www.nyse.com/pdfs/07-148.PDF