The NYSE Regulation is to take over market surveillance duties for NYSE Group’s various exchanges after the current contract with the Financial Industry Regulation Authority (FINRA) runs out, the group said Monday
NYSE Regulation will directly perform market surveillance and enforcement for its three equities and two options exchanges, after its current contract with FINRA expires on Dec. 31, 2015. FINRA will retain the cross-market surveillance and investigation functions and will continue to conduct the registration, testing, and examinations of broker-dealer members of NYSE Group’s exchanges, NYSE Group said.
“NYSE Regulation is expanding its market surveillance, investigation and enforcement capabilities to oversee and enforce a robust regulatory program for NYSE Group’s exchanges. We believe our expertise and proximity to the markets being regulated will enhance effective surveillance and rule enforcement,” said NYSE Regulation CEO, Mary Brienza.
The regulatory division, which is a wholly-owned, not-for-profit subsidiary of New York Stock Exchange LLC, currently oversees FINRA’s performance of its regulatory duties on behalf of the New York Stock Exchange, NYSE Arca and NYSE MKT, including administering surveillance, enforcement, and disciplinary programs to ensure firms’ compliance with exchange rules and federal securities laws, as well as monitoring and enforcing compliance by listed companies with listing standards. It also announced that it has selected Cinnober as a technology partner for the development and implementation of an enhanced surveillance system.
“NYSE Group supports the independent decision by NYSE Regulation’s board that NYSE Regulation will directly perform the surveillance, investigation and enforcement functions for NYSE Group’s exchanges as we believe the effectiveness of these functions is integral to the operation of our exchanges and to market integrity, fairness and investor confidence,” said NYSE Group president, Thomas Farley.