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NYSE EURONEXT STATEMENT REGARDING SETTLEMENT AGREEMENT WITH SECURITIES AND EXCHANGE COMMISSION


September 14, 2012, New York, NY – NYSE Euronext (NYSE: NYX) announced today that it has reached a settlement agreement with the Securities and Exchange Commission (SEC) relating primarily to alleged violations by New York Stock Exchange LLC of Rule 603(a) of Regulation NMS, a rule governing the timing of delivery of certain exchange market data.  The SEC also alleged that NYSE failed to retain certain computer files in violation of SEC record-keeping requirements.   NYSE Euronext entered into the settlement without admitting or denying the SEC’s allegations.  In accordance with the settlement, NYSE Euronext has agreed to pay a $5 million fine, to retain an independent consultant to evaluate NYSE Euronext’s U.S. exchanges’ current Rule 603(a) compliance systems, and to implement the consultant’s recommended improvements.

The SEC’s allegations focused primarily on differentials in the speed of NYSE’s delivery of market data from 2008 through mid-2010.  The SEC alleged that, at certain times during that period, NYSE delivered market data through two proprietary data feeds slightly faster than it delivered market data to the consolidated tape.  The alleged timing differentials, which were generally at the level of milliseconds, were the result of technology issues that have been resolved. 

The SEC does not allege any intentional misconduct or that the NYSE data delays caused any investor harm.  NYSE completed systems modifications in 2010 and 2011 that eliminated the technology issues that were the subject of the investigation.  NYSE also now preserves the computer files that were the subject of the records-retention charge.

NYSE Euronext Chief Executive Officer Duncan L. Niederauer said, “NYSE Euronext is committed to the highest standards of integrity and accountability.  The timing differentials stemmed from technology issues, not from intentional wrongdoing by the exchange or any of its personnel.

“NYSE Euronext is pleased to have this matter resolved, and believes that the settlement is in the best interest of its shareowners, clients and employees.  We will continue to take every responsible measure to ensure that our market operates with the utmost fairness and transparency.”

 

About NYSE Euronext
NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company's exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With approximately 8,000 listed issues (excluding European Structured Products), NYSE Euronext's equities markets - the New York Stock Exchange, NYSE Euronext, NYSE MKT, NYSE Alternext and NYSE Arca - represent one-third of the world's equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world's second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index. For more information, please visit: http://www.nyx.com.

 

Media
Robert Rendine – 212 656 2180, rrendine@nyx.com
Rich
Adamonis – 212 656 2140,
radamonis@nyx.com

Investor Relations
Stephen Davidson – 212 656 2183, sdavidson@nyx.com