The New York Stock Exchange imposed $5.85 million of fines on 20 securities firms Tuesday, censuring them for failures to submit accurate trading data.
The companies, 18 members of the exchange and two former members, failed to submit accurate electronic "blue sheets" with trading information requested by the exchange and other regulators, the NYSE regulation division said, and also failed "to establish and maintain appropriate systems and procedures for the supervision and control of this reporting requirement."
Of the 20 firms, six were fined $500,000 apiece, five $300,000 each, and the remaining nine $150,000 each. Merrill Lynch & Co.'s Merrill Lynch, Pierce, Fenner & Smith Inc. and Lehman Brothers Holdings Inc.'s Neuberger Berman LLC each was fined $500,000. A Merrill spokesman and a Lehman spokeswoman declined to comment.
"Blue sheets are an essential component of NYSE investigations into insider trading, market manipulation, and other potential violations," Susan Merrill, the exchange's chief of enforcement, said in a statement. "Firms must get their operations in order, then periodically test their internal systems to be sure this vital information is accurate."
The exchange said it also started disciplinary actions against two member firms, including Wedbush Morgan Securities Inc., for allegedly failing to submit accurate blue-sheet data and alleged supervisory violations.
