The New York Stock Exchange took disciplinary action today against four member firms and 15 individuals for assorted violations of NYSE rules and federal securities laws.

UBS Securities LLC Inc., ABN AMRO Inc. and its predecessor ABN AMRO Securities LLC were among the companies disciplined for operational and supervisory issues.

Without admitting or denying guilt, UBS consented to a finding that it failed to preserve electronic communications. An NYSE hearing panel found that the firm failed to preserve electronic communications for three years. It also found the firm failed to establish an adequate system to ensure compliance with exchange rules and federal securities laws concerning the retention of electronic communications.

The NYSE censured UBS, imposed a US$2.1 million fine, and secured an undertaking relating to its procedures regarding the preservation of electronic communications.

ABN AMRO consented, without admitting or denying guilt, to findings of financial, operational, record keeping and supervisory deficiencies. It received a censure and a $200,000 fine. Predecessor firm, ABN AMRO Securities, was also censured and received a $75,000 fine for similar violations. The firms, which merged in March 2002, consented to the penalties.

The other firm to be disciplined was Preferred Trade Inc. of San Francisco. It consented to findings that it failed to fund its special reserve account causing hindsight deficiencies, also without admitting or denying guilt. The NYSE imposed a penalty on Preferred Trade of a censure and $100,000 fine.

The discipline imposed on individuals was for conduct including trading while no longer a member of the exchange; concealing documents; improper portfolio pricing; sales practice misconduct; misappropriation; and failing to cooperate with an investigation; among other things.

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