The mispriced transactions totaled 442,600, from October 2008 through the start of this year. The amount owed customers for the mistakes was $420,360. Less than a buck a trade. On a 200-share trade, that equals less than 3 cents each.
Rules and Regs
Transaction Taxes Don't Help
Transaction taxes result in more volatile markets, wider bid-ask spreads, greater market impact and a decrease in volume. Those are key findings of a recent study conducted jointly by the Bank of Canada and Rutgers University into the impact of a transaction tax administered by the State of New York until 1981.
SEC Pushes Anti-Glitch Regulation
The Securities and Exchange Commission has proposed new rules designed to protect against the kinds of technical disruptions that plagued stock exchanges last year.
SEC Eyes Order Type Development
The Securities and Exchange Commission has begun inspecting how the nation's stock exchanges develop, refine and approve new types of buy and sell orders, in the face of a great proliferation in order types.
SEC Division Turns to Data Geeks
After a rocky few years of flash crashes, trading glitches and botched IPOs, the Securities and Exchange Commission may finally be making headway in its battle with the streaming reams of disparate and diffused electronic data that define the modern U.S. securities trading markets.
FINRA Probing ATS Practices
The Financial Industry Regulatory Authority is about to pay visits to a wide range of alternative trading systems, in an attempt to make sure they are properly handling customers' orders.
Switching Chairs Delays Changes
President Obama's nomination of Mary Jo White to be the next chairman of the Securities and Exchange Commission brings delay and uncertainty about how equities markets will operate over the long haul, according to participants in industry discussions.
TD Ameritrade: No Tax On ADRs
In an interview with Traders Magazine, a senior TD Ameritrade official expressed dismay that the new financial transactions tax being levied by France extends to trading in the United States.
FINRA Steps Up Surveillance
The Financial Industry Regulatory Authority has begun to implement a new set of computer programs that watch for illicit trading patterns across national exchanges, dark pools and brokers' internal pools of orders, as well as alternative trading systems.
Nasdaq Payment Plan Gets Boost
A Nasdaq OMX Group plan to allow issuers of exchange-traded funds to pay broker-dealers to make markets in their securities has won a new lease on life.
Changing of the Guard at SEC
So long, and thanks for the memories, even if they weren't so good. That might have been outgoing Chairman Mary Schapiro's final lament as she stepped out the door at the Securities and Exchange Commission last month.
SEC Eyes Level Playing Field
With exchanges and operators of alternative trading systems each trooping to Washington this year to complain about the unfair competitive advantages held by the other, Securities and Exchange Commissioner Daniel Gallagher weighed in on the issue recently.
SEC Tackles Market Maker Payments
The Securities and Exchange Commission is set to decide by Dec. 8 whether to approve proposals by the Nasdaq Stock Market and NYSE Arca to permit sponsors of exchange-traded funds to pay broker-dealers for making a market in their securities.
SIFMA Blasts NASDAQ Plan
The Securities Industry and Financial Markets Association opposes a Nasdaq OMX Group plan to offer algorithmic trading services to its members.
Drop Copies Get On the Radar
Kill switches are getting the most attention as a means to prevent disorderly trading in the public markets, but exchange "drop copy" reports are increasingly on the radar. At least one big broker-dealer believes the Securities and Exchange Commission should mandate their usage.
'Kill Switch' Design Worries Brokers
Brokerage executives are anxious about mechanisms designed by stock exchanges that will automatically shut off a firm's incoming orders.