The Financial Industry Regulatory Authority Inc. and NYSE Regulation Inc. have announced an agreement with 10 U.S. exchanges to share centralized control over detecting insider trading .
If the new approach is approved by the Securities and Exchange Commission, it would replace the current system in which each equity exchange is responsible for surveillance of trading on its market and any investigations and enforcement actions involving its members.
The SEC proposal follows year-long discussions with New York and Washington-based Finra and NYSE Regulation, a not-for-profit subsidiary of New York-based NYSE Euronext Inc., over how to improve market integrity and better protect investors.
Markets participating in the agreement are the American Stock Exchange, the Boston Stock Exchange, the CBOE Stock Exchange, the Chicago Stock Exchange, the International Securities Exchange, the NASDAQ Stock Market, the National Stock Exchange, the New York Stock Exchange, NYSE Arca and the Philadelphia Stock Exchange.
“This agreement takes insider trading surveillance to a new level because it consolidates within Finra and NYSE Regulation what used to be 11 discreet programs at each market center,” Finra senior executive vice president Stephen Luparello said in a statement. “As a result, potential insider traders, whether acting alone or in concert with others and regardless of where they trade in the U.S., will be more readily identified in this new, more-unified structure.”
No comments:
Post a Comment