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As a self-regulatory organization ("SRO "), the NYSE is required to enforce the provisions of the Securities Exchange Act of 1934, and the rules promulgated thereunder, as well as the rules of the NYSE. This responsibility has been delegated to NYSE Regulation, which includes the Division of Enforcement. Enforcement investigates and prosecutes possible trading related violations of NYSE Amex Options rules and federal securities laws within the member firm community.
Enforcement cases include:
- Market manipulation and abusive trading practices
- Insider trading
- Short sale and Reg SHO violations
- Trading ahead of customer orders
- Misconduct on the trading floor
- Reporting and supervisory failures
- Books and records deficiencies
- Breach of financial and operational requirements
Cases outside of NYSE Regulation's jurisdiction are referred to the SEC or other regulatory agencies.
Enforcement cases are presented to the NYSE Hearing Board , which can impose sanctions ranging from a censure and fine to a suspension, expulsion or bar. Appeals of Hearing Board decisions can be made to the Board of Directors of NYSE Regulation and, thereafter, the SEC , U.S. Courts of Appeals, and the U.S. Supreme Court.
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