Brokerage Firm Fined for Failing to Execute Trade at Best Price

A brokerage firm settled NYSE American LLC charges for failing to execute an options trade at the best available price.

In a Letter of Acceptance, Waiver and Consent, the exchange found that due to a misunderstanding in the customer's execution instructions the firm opted not to partially sell a part of an option order at $1.78, but ended up selling all of the order at $1.75, thereby failing to maximize the price on the higher priced part of the order.

The exchange determined that the firm violated NYSE American Options Rule 16 ("Business Conduct"). To settle the charges, the firm agreed to (i) a censure and (ii) a civil monetary penalty of $10,000.

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