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The Market Surveillance division of NYSE Regulation monitors trading of NYSE-listed securities by member firms away from and on the Floor of the Exchange. Using sophisticated technology and pattern recognition systems, the staff investigates trading abuses, recommends formal or informal disciplinary actions, and refers matters to NYSE Regulation's Enforcement division or to the Securities and Exchange Commission (SEC ) for matters outside NYSE Regulation's jurisdiction.
Under a September 2008 agreement with 10 U.S. equity exchanges, the division is also responsible for detecting and investigating possible insider trading of NYSE-, NYSE Arca-, and NYSE Alternext US-securities no matter where they trade in the United States .
When Market Surveillance detects possible insider trading that involves corporate employees, officers or directors of a listed company, or members of the public, it refers these cases to the SEC . If cases are prosecuted by the SEC or the U.S. Attorney's office, Market Surveillance may provide expertise, trading data and serve as an expert witness as requested by the SEC .
Additional areas of focus include:
- market manipulation
- breaches of fiduciary duties
- violation of agency responsibility and investor protection rules
- failure by specialists to maintain fair and orderly markets in listed securities and products, and
- violation of rules governing members’ on-Floor trading and auction market procedures.
Market Surveillance also has responsibility for:
- Floor member education and Floor official training
- specialist performance evaluation
- intermarket cooperation
- development of regulatory rules, and
- implementing the Exchange’s allocation policy.
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