NYSE Charges Floor Broker for Providing Non-Public Market Data to Third Parties

The New York Stock Exchange, LLC ("NYSE") charged a former floor broker for improperly providing non-public market information to third parties in exchange for direct payments.

According to the NYSE complaint, during the relevant period, the floor broker unlawfully disclosed daily stock imbalance information—commonly referred to as "market looks"—to non-customers who were not entitled to receive such data.

The NYSE alleged that the floor broker:

• provided stock imbalance information for approximately 100-120 symbols per day by phone to an entity ("Company A") that was not a customer and did not engage in securities trading.
• knew that Company A aggregated and transmitted the imbalance data to another company ("Company B"), which then sold the data to paid subscribers under the name "Market Imbalance Meter."
• actively participated in Company B's trader chat room, where he directly shared non-public imbalance information with individuals who were neither customers of his employer nor engaged in securities transactions.
• received approximately $1,300 per month from Company A in his personal capacity, totaling approximately $91,000 over the course of nearly six years.

The NYSE charged the floor broker with violating NYSE Rule 36 ("Use of Non-NYSE Provided Cellular Phones on the Floor of the Exchange"), NYSE Rule 2010 ("Standards of Commercial Honor and Principles of Trade") and NYSE Rule 2050 ("Other Offenses").