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New York Stock Exchange to pay $9M SEC penalty for January trading failure

New York Stock Exchange to pay $9M SEC penalty for January trading failure

The New York Stock Exchange (NYSE) will pay a $9 million penalty to the SEC due to a market opening failure in January 2023, which caused significant price volatility and resulted in thousands of canceled trades. The incident, triggered by staff mistakenly leaving a backup trading system active during maintenance, disrupted opening auctions for over 2,800 securities and prompted trading pauses for 84 stocks. Following this event, NYSE implemented new monitoring controls and system safeguards to enhance the reliability of its trading operations and address the breaches of SEC regulations regarding critical trading systems.

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