Chicago Exchange Settles With SEC On Broker Monitoring

Law360, New York (August 16, 2013, 4:23 PM EDT) -- The Chicago Stock Exchange Inc. on Thursday agreed to pay $300,000 to the U.S. Securities and Exchange Commission to settle allegations that its policies failed to ensure that brokers secured the best possible prices when buying and selling securities, sometimes harming customers.

The exchange fell short in monitoring how its institutional brokers reported certain trades, allowing some to take advantage of a flaw in its automated system, according an order the SEC filed Thursday. With the exchange's “validated cross system,” brokers could work out the conditions...
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