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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Bats Global Markets, Inc. (delisted) | AMEX:BATS | AMEX | Ordinary Share |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 35.13 | 0.00 | 01:00:00 |
The SEC’s market access rule, Rule 15c3-5, requires, among other things, that broker-dealers who provide customers with access to the markets implement risk management controls reasonably designed to prevent the entry of erroneous or unintended orders that might otherwise jeopardize the broker-dealer’s financial condition, that of other market participants, or the integrity of the markets. As a result of the investigation, the exchanges found, among other things, that at various times during the period from July 14, 2011 through October 20, 2014 (the “Review Period”) the firm’s controls for preventing the entry of erroneous or unintended orders were not adequate. More specifically, the exchanges found that:
The exchanges found that, during the Review Period, the firm filed over 200 clearly erroneous petitions with the exchanges, raising concerns among the exchanges about the adequacy of the firm’s erroneous order controls. In some instances, the market disruption caused by these erroneous orders was substantial. For example, on May 17, 2013, with less than a minute to go in the trading day, one of the firm’s traders entered a market order to sell 400,000 shares of Anadarko Petroleum Corporation (“APC”) for the firm’s account. That order represented approximately 12 percent of the stock’s ADV over the prior 30 calendar days. When the trader became concerned that a portion of the order was hung up in the firm’s system, and that little time remained in the trading day in which to execute the order, the trader entered a new sell order for 150,000 shares, directing a firm algorithm to use an aggressive trading strategy to execute the order. The handling of the order resulted in the price of APC dropping from $90.24 to $0.01 by the time both orders were executed, a price decline in the last second of trading of 99.99%. As a result of the error, all executions at or below $87.56 were broken.
In addition to the deficiencies described above, the exchanges also found that that the firm violated the SEC’s market access rule in that:
As a result of the above violations, Merrill Lynch also violated the exchanges’ respective supervision rules.
Tami Schademann, Chief Regulatory Officer, BATS Exchange Inc., John Zecca, Senior Vice President of Market Regulation for Nasdaq’s U.S. Markets and Anthony J. Albanese, Chief Regulatory Officer for NYSE, issued the following joint statement: “Today’s announcement by the six exchanges underscores the exchanges’ efforts at ensuring firms comply with the SEC’s market access rule and exchange supervision rules which require firms maintain effective risk management controls and procedures to prevent the entry of erroneous or unintended orders as well as effective capital and credit thresholds. Adherence by firms to these requirements is essential to the stability of U.S. financial markets.”
In concluding this settlement, Merrill Lynch neither admitted nor denied the charges, but consented to the entry of the exchanges’ findings. In resolving this matter, FINRA took into consideration a parallel disciplinary action instituted against the firm by the SEC.
The settlements will become final on the dates set by the rules of the respective self-regulatory organizations.
About Bats Global Markets, Inc.Bats Global Markets, Inc. (Bats:BATS) is a leading global operator of exchanges and services for financial markets, dedicated to Making Markets Better. Bats is the second-largest stock exchange operator in the U.S., operates the largest stock exchange and trade reporting facility in Europe, and the #1 market globally for ETF trading. Bats also operates growing ETF listings venues in the U.S. and Europe, two U.S. options exchanges and Bats Hotspot, our global foreign exchange market. ETF.com, a leading provider of ETF news, data and analysis, is a wholly-owned subsidiary. The company is headquartered in Kansas City with offices in New York, London, Chicago, San Francisco and Singapore. Visit bats.com and @BatsGlobal for more information.
About NASDAQNasdaq (Nasdaq:NDAQ) is a leading provider of trading, clearing, exchange technology, listing, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to more than 3,700 listed companies with a market value of $9.3 trillion and over 18,000 corporate clients. To learn more, visit: nasdaq.com/ambition or business.nasdaq.com.
About NYSE GroupNYSE Group is a subsidiary of Intercontinental Exchange (NYSE:ICE), a leading operator of global exchanges and clearing houses, and a provider of data and listings services. NYSE Group includes exchanges, market data and connectivity services. The equity exchanges -- the New York Stock Exchange, NYSE MKT and NYSE Arca -- trade more U.S. equity volume than any other exchange group. NYSE is the premier global venue for capital raising, leading worldwide in IPOs, including technology IPOs. NYSE Arca Options and NYSE Amex Options are leading equity options exchanges. To learn more, visit www.nyse.com/index[nyse.com].
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BATS Media Contact: Randy Williams rwilliams@bats.com +1 212-378-8522 NASDAQ Media Contact: Allan Schoenberg allan.schoenberg@nasdaq.com +1 212-231-5534 NYSE Group Media Contact: Kristen Kaus kristen.kaus@nyse.com +1 212-656-2205
1 Year Bats Global Markets, Inc. (delisted) Chart |
1 Month Bats Global Markets, Inc. (delisted) Chart |
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