The Market Surveillance division is responsible for monitoring trading in NYSE- and NYSE Arca-listed securities and for investigating activity for compliance with Exchange rules and federal securities laws. Such activity might involve:
- insider trading
- 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 on-Floor trading by member organizations and auction market procedures.
In this connection, Market Surveillance staff uses sophisticated technology and pattern recognition systems to detect and investigate activity that may constitute violation of Exchange rules and/or federal securities laws. The division recommends formal or information disciplinary actions and refers matters to NYSE Regulation's Enforcement division or to the U.S. Securities and Exchange Commission (SEC) for matters outside of NYSE Regulation's jurisdiction.
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 Enforcement division or, if the participants are outside of NYSE Regulation’s jurisdiction, to the SEC. If cases are prosecuted by the SEC or the U.S. Attorney's office, Market Surveillance staff may provide expertise, trading data, and serve as an expert witness as requested by the SEC.
Market Surveillance also has responsibility for floor-member education, regulatory rule interpretation and development, and investigation of investor complaints related to trading on NYSE Group systems.
