Monthly Disciplinary Actions - July 2009

NYSE AMEX DISCIPLINARY ACTION
AMEX Specialist Firms and Individual Disciplined
AIM Securities Co., Advanced Securities Co., AEGIS Specialist LLC and Michael Marchisi
Hearing Board Decision: 09-AMEX-09-12
08 Jul 2009
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Case Note
AIM Securities Co., Advanced Securities Co., and AEGIS Specialist LLC: Violated Amex Rules 155 by failing to give precedence to orders entrusted to them as agent in multiple equities before executing at same price purchases or sales in those multiple equities for accounts in which Firm had interest; violated Amex Rule 231(e) and Regulation NMS Rule 602b.2 by failing to honor published quotation, by failing to execute equity orders upon presentment or by executing these orders at prices inferior to published quoted market; violated Amex Rule 16 by failing to adhere to principles of good business practice by failing to execute market orders in timely manner; violated Amex Rule 232 by failing to issue required ITS pre-opening notifications in eligible securities to other participant markets; violated Amex Rule 170(b), (d) Commentary .03 by failing to issue quotations that had proper relation to preceding and/or succeeding transactions; violated Amex Rule 16 by failing to adhere to principles of good business practice by disseminating quote that locked or crossed quoted market of another ITS participant and then failing to promptly unlock or uncross ITS participant’s market. Consent to censure and $65,000 joint and several fine.

Michael Marchisi: Violated Amex Rule 170(b) by inappropriately freezing NETS Display Book thereby failing to maintain fair and orderly market pursuant to specialist obligations. Consent to censure and $65,000 joint and several fine.

Case Summary
AIM Securities Co., Advanced Securities Co., and AEGIS Specialist LLC, all of New York, NY; member firms, consented without admitting or denying guilt to trading violations.  Michael Marchisi, of Blooming Grove, New York, consented without admitting or denying guilt to failing to maintain fair and orderly market pursuant to specialist obligations.

  • An NYSE Hearing Officer found that from March 1, 2002 through February 2007, AIM Securities Co., Advanced Securities Co., and AEGIS Specialist LLC (the “Aim Firms”): Violated Amex Rules 155 by failing to give precedence to orders entrusted to them as agent in multiple equities before executing at same price purchases or sales in those multiple equities for accounts in which the AIM Firms had an interest. In addition, on various occasions between January 2004 and February 2007 the AIM Firms committed various order handling violations by failing to honor the published quotation, failing to execute market orders in a timely manner, failing to issue required ITS pre-opening notifications, failing to issue quotations that had a proper relation to the preceding and/or succeeding transactions, and by disseminating a quote that locked or crossed the quoted market of another ITS participant and then failing to promptly unlock or uncross the ITS participant's market.

  • An NYSE Hearing Officer also found that from March 8, 2004 through October 21, 2004, on numerous occasions, Michael Marchisi inappropriately froze the NETS Display Book and thereby failed to maintain a fair and orderly market pursuant to his specialist obligations.

The NYSE imposed a penalty of a censure and a joint and several fine of $65,000. The respondents consented to the penalties.
View Text of Disciplinary Decision (pdf)
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NYSE AMEX DISCIPLINARY ACTION
Member Firm Disciplined for AMEX Rule Violations
Jane Street Specialists, LLC
Hearing Board Decision: 09-AMEX-13
08 Jul 2009
Summary Back to Top
Case Note
Violated  Amex Rule 155 by failing to give precedence to orders entrusted to it as agent in an ETF before executing at the same price purchases or sales in that ETF for accounts in which Firm had interest. Consent to censure and $4,000 fine.
Case Summary
Jane Street Specialists, LLC of New York, New York, a member firm consented without admitting or denying guilt to trading violations.

  • An NYSE hearing officer found that during the time period of March 1, 2005 through May 31, 2005, on certain occasions, Jane Street   violated its respective agency obligations by failing to give precedence to orders entrusted to the Firm.  Orders were transmitted to the Floor of the Amex electronically through the Amex’s New Equity Trading System (“NETS”) electronic equities trading platform and entrusted to Jane Street   as agent. On certain occasions during the Relevant Period, Jane Street   executed transactions in equities of which it was registered for accounts in which it had an interest before executing at the same price any purchase or sale in the same equities for accounts in which it was entrusted as agent.

The NYSE imposed a penalty of a censure and $4,000 fine. Jane Street consented to the penalty.

 
View Text of Disciplinary Decision (pdf)
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