Monthly Disciplinary Actions - June 2009

Violated Amex Rule 155 by failing to give precedence to order entrusted to it as agent and overrode NETS trading ahead alert to execute order at the same price for an account in which Firm had interest; violated Amex Rule 231(e) and Regulation NMS Rule 602b.2 by failing to execute orders upon presentment, thereby failing to honor published quotation or executing these orders at prices inferior to published quoted market; violated Amex Rule 232 by failing to issue required ITS pre-opening notifications in eligible securities to other participant markets.  Consent to censure and joint and several $20,000 fine.

09-AMEX-7: Bluefin Trading, LLC

Violated Exchange Act Rule 17a-5(a)(2)(iii) and Amex Rule 30 by filing FOCUS Reports more than 17 business days after end of calendar quarter; violated Exchange Act Rule 17a-11(d) by failing to give notice to Amex of failure to make and keep current accurate books and records on day it became aware of such failure and failing to transmit to Amex within 48 hours of required initial notice a report stating what was being done to correct situation; violated Amex Rule 958-ANTE(g), Exchange Act Rule 11a-1 and Regulation X by placing non-market making option trades in option market maker account, thereby causing clearing firm to extend market maker credit for non-market making activity. Consent to censure and joint and several $20,000 fine.

• Bluefin Specialists, LLC violated Amex Rule 155 by failing to give precedence to order entrusted to it as agent and overrode NETS trading ahead alert to execute order at same price for account in which Firm had interest; violated Amex Rule 231(e) and Regulation NMS Rule 602b.2 by failing to execute orders upon presentment, thereby failing to honor published quotation or executing these orders at prices inferior to published quoted market; violated Amex Rule 232 by failing to issue required ITS pre-opening notifications in eligible securities to other participant markets, and:
• Bluefin Trading, LLC violated Exchange Act Rule 17a-5(a)(2)(iii) and Amex Rule 30 by filing FOCUS Reports more than 17 business days after end of calendar quarter; violated Exchange Act Rule 17a-11(d) by failing to give notice to Amex of failure to make and keep current accurate books and records on day it became aware of such failure and failing to transmit to Amex within 48 hours of required initial notice a report stating what was being done to correct situation; violated Amex Rule 958-ANTE(g), Exchange Act Rule 11a-1 and Regulation X by placing non-market making option trades in option market maker account, thereby causing clearing firm to extend market maker credit for non-market making activity.

The NYSE imposed a penalty of a censure and joint and several $20,000 fine.  Both firms consented to the penalty.

• An NYSE hearing officer found that on April 11, 2003, Martino failed to properly represent an order to the option crowd, in violation of Amex Rule 950(c) – Commentary .03, Amex Rule 950(d) – Commentary .03, and Article V, Section 4(h) of the Amex Constitution.

The NYSE imposed a penalty of a censure and ninety-day bar. Martino consented to the penalty.