by Howard Haykin

Over the past 2 months, NYSE ARCA reported the following disciplinary actions against its member firms:

SUMMIT SECURITIES GROUP, an Equities Trading Permit (“ETP”) Holder since 2012 … agreed to a $90K fine to settle NYSE Arca charges that it violated:  (i) NYSE Arca Equities Rule 7.23, by failing to maintain continuous, two-sided trading interest in approximately 130,000 instances; and (ii) NYSE Arca Equities Rule 6.18(b), by failing to establish and maintain adequate supervisory procedures.  [Case #2017-05-00062]

BARCLAYS CAPITAL, an Options Trading Permit (“OTP”) Holder since 2008 … agreed to a $275K fine to settle NYSE Arca charges that it violated:  (i) NYSE Arca Options Rule 6.77A, by failing to obtain agreement of its customer before busting and adjusting a trade and adjusting trades in a manner that circumvents other Exchange Rules; (ii) NYSE Arca Options Rule 11.1 by busting a trade that resulted in an inferior price for its customer; (iii) NYSE Arca Options Rules 6.68 and 9.17 and NYSE Arca Rules 2.28 and 11.16, by failing to create, maintain, and preserve accurate records of adjustments to customer orders and documentation of customer instruction and/or agreement to modify trades pursuant to Rule 6.77A; and, (iv) NYSE Arca Options Rule 11.18, by failing to establish and maintain adequate supervisory systems and WSPs.  [Case #2017-05-00011]

BARCLAYS CAPITAL, an OTP Holder since 2008 … agreed to a $70K fine to settle NYSE Arca charges that it violated:  (i) NYSE Arca Options Rule 6.49(b), by effecting equity transactions after gaining knowledge of undisclosed terms and conditions of orders in related option series; and, (ii) NYSE Arca Options Rule 11.18(b), by failing to establish and maintain adequate supervisory systems.  [Case #2017-07-00014]

COBRA TRADING, an ETP since 2005 … agreed to a $20K fine to settle NYSE Arca charges that it violated:  (i) Rule 15c3 -5(c)(1)(í), by failing to have controls and supervisory procedures reasonably designed to prevent the entry of orders that exceeded appropriate pre-set credit thresholds; (ii) Rule 15c3-5(c)(1)(ii), by failing to have controls and supervisory procedures reasonably designed to prevent the entry of erroneous orders by rejecting orders that exceed appropriate price parameters, on an order-by-order basis or over a short period of time; and, (iii) NYSE Arca Equities Rules 6.18(b) and (c), by failing to establish and maintain adequate supervisory systems and WSPs.  [Case #2017-10-00061]

IMC FINANCIAL MARKETS, an ETP since 2006 … agreed to an $8K fine to settle NYSE Arca charges that it violated:  (i) NYSE Arca Rule 7.37-E(e)(2), by failing to reasonably avoid displaying, and engaging in a pattern or practice of displaying, quotations that locked or crossed a protected quotation; and, (ii) NYSE Arca Rules 11.18 and 9.2010-E, by failing to establish and maintain a supervisory system, including WSPs.  [Case #20150468012]

MORGAN STANLEY, an ETP since 1974 … agreed to an $8.9K fine to settle NYSE Arca charges that it violated:  (i) Exchange Act Rule 611(c) of Regulation NMS and NYSE Arca Rule 7.31-E(e)(3), by submitting approximately 2,691 ISOs to the NYSE Arca Marketplace that may have traded through protected quotations; and, (ii) NYSE Arca Rule 11.18, by failing to establish, maintain, and enforce supervisory systems and WSPs.  [Case #20140430991]