NYSE Group today announced NYSE Regulation will directly perform the market surveillance, investigation and enforcement functions for NYSE Group’s three equities exchanges and two options exchanges upon the expiration of the contract with the Financial Industry Regulation Authority (FINRA) on December 31, 2015. FINRA will retain the cross-market surveillance and investigation functions and will continue to conduct the registration, testing, and examinations of broker-dealer members of NYSE Group’s exchanges.
NYSE Regulation performs or oversees FINRA’s performance of various regulatory duties on behalf of the New York Stock Exchange, NYSE Arca and NYSE MKT, including administering surveillance, enforcement, and disciplinary programs to ensure member firms’ compliance with exchange rules and federal securities laws, as well as monitoring and enforcing compliance by listed companies with listing standards. It is a wholly-owned, not-for-profit subsidiary of New York Stock Exchange LLC.
“NYSE Group supports the independent decision by NYSE Regulation’s board that NYSE Regulation will directly perform the surveillance, investigation and enforcement functions for NYSE Group’s exchanges as we believe the effectiveness of these functions is integral to the operation of our exchanges and to market integrity, fairness and investor confidence,” saidNYSE Group President Thomas W. Farley.
“NYSE Regulation is expanding its market surveillance, investigation and enforcement capabilities to oversee and enforce a robust regulatory program for NYSE Group’s exchanges. We believe our expertise and proximity to the markets being regulated will enhance effective surveillance and rule enforcement,” said NYSE Regulation CEO Mary Brienza.
As an important step in expanding the market surveillance and enforcement program for NYSE Group’s exchanges, NYSE Regulation has selected Cinnober as a technology partner for the development and implementation of the enhanced surveillance system. Cinnober is a world-leading supplier of financial technology to trading and clearing venues, including exchanges, clearinghouses, banks and brokers.
NYSE Regulation has also appointed Adam J. Wasserman as NYSE Regulation Head of Enforcement. Mr. Wasserman was previously a partner in the New York office of the law firmDechert LLP, where he was a senior member of its White Collar and Securities Litigation Group.
NYSE Regulation Board of Directors
Co-Chair - James K. Rutledge, Founder and former Managing Partner, Rutledge Securities Group
Co-Chair - Richard Moore, CEO and President, First Bancorp and former State Treasurer, North Carolina.
Fred W. Hatfield, Founder, Hatfield Advisory Services and Chairman of the Board, ICE Futures U.S., Inc.
Mary Brienza, CEO, NYSE Regulation, Inc.
