Firm Settles NYSE Arca Charges for Order Control Supervisory Failures

A firm settled NYSE Arca charges for failing to maintain sufficient erroneous order controls and related written supervisory procedures ("WSPs").

In a Letter of Acceptance, Waiver and Consent, NYSE Arca alleged that the firm failed to:

• maintain a hard-block price control, which enabled an erroneous order to go through;

• provide NYSE Arca with an explanation as to why it chose its control settings and how they were reasonable, given the firm's trading activity;

• implement written supervisory procedures with respect to intraday customer credit limit changes;

• sufficiently document justifications for intraday changes to customer credit limits; and

• include in its WSPs details as to how it conducts its annual SEA Rule 15c3-5 ("Risk Management Controls for Brokers or Dealers with Market Access") controls and procedures review process.

As a result of its findings, NYSE Arca determined that the firm violated SEA Rules 15c3-5(c) and (e), and NYSE Arca Rule 11.18 ("Supervision").

To settle the charges, the firm agreed to (i) a censure and (ii) a $40,000 fine.