NEW YORK, Sept. 14 (UPI) -- The New York Stock Exchange agreed to a civil enforcement action by the Securities and Exchange Commission Friday and will control early access to market data.
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."
