The SEC accused the NYSE of practices that allowed certain brokerage clients to receive stock data before the broader public did, usually in a valuable split-second advantage, The New York Times reported Friday.
The NYSE will adopt a battery of internal controls and pay a $5 million fine. It is the SEC's first fine of an exchange, the newspaper said.
"Improper early access to data, even measured in milliseconds, can in today's markets be a real and substantial advantage that disproportionately disadvantages retail long-term investors," Robert Khuzami, SEC enforcement director, said in a statement. "That is why the SEC rules mandate that exchanges give the public fair access to basic market data."