Post by jannikki on May 3, 2006 19:27:54 GMT -4
Broker group seeks to overturn NYSE automation ruling
Tue May 2, 2006 6:20 PM ET
By Megan Davies and Kevin Drawbaugh
NEW YORK/WASHINGTON, May 2 (Reuters) - A floor broker group has asked an appeals court to overturn a decision by the U.S. Securities and Exchange Commission to approve the New York Stock Exchange's (NYX.N: Quote, Profile, Research) "hybrid" market, which is set to bring more automation to the Big Board's floor, a court filing shows.
New US stock rules seen delayed, possibly scrapped
UPDATE 4-Nasdaq raises stake in LSE to 18.7 pct
US SEC's Nazareth supports penny options trading
The Independent Broker Action Committee (IBAC), an alliance of NYSE floor brokers and members, on April 25 filed a petition in the U.S. Court of Appeals for the District of Columbia, asking that the decision be sent back to the SEC for reconsideration.
The petition claims that the SEC failed to address the issue that "by discriminating against floor brokers" the hybrid will "seriously damage their businesses and business prospects and consequently harm the investing public".
The NYSE won approval in March from the SEC to adopt wider use of automated trading systems that are bringing the world's largest stock market into the digital age.
The SEC approved the NYSE's "hybrid market" plan -- an attempt to blend the Big Board's traditional floor-based auction market with the sort of high-tech execution systems that already dominate securities trading in virtually every other major market in the world.
IBAC had complained about the hybrid model last year, saying it had reservations about the NYSE's deal to buy electronic trading company Archipelago Holdings Inc. and the hybrid market, and that it was committed to protecting the auction market model.
A spokesman for the NYSE said on Tuesday: "The implementation of the hybrid is continuing and we welcome any constructive input."
The SEC declined comment.
The SEC suffered a court blow earlier this month, involving a SEC rule aimed at making mutual fund directors more independent of funds' management after scandals embarrassed the $9.2 trillion industry.
In a win for a business lobbying group that has twice sued the SEC over the rule, the court found the commission last year made procedural errors in handling the measure and said it will be struck down if the SEC does not reconsider within 90 days.
The Chamber of Commerce sued the SEC after the rule was adopted. Last June, the appeals court gave the chamber a partial win by finding flaws in how the rule was developed and sent it back to the SEC "to address the deficiencies."
The five-member SEC then reaffirmed the rule within days. The chamber sued again after that, alleging improper procedure.
© Reuters 2006. All Rights Reserved.
yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060502:MTFH45893_2006-05-02_22-20-20_N02394345&symbol=NYX.N&rpc=44
Tue May 2, 2006 6:20 PM ET
By Megan Davies and Kevin Drawbaugh
NEW YORK/WASHINGTON, May 2 (Reuters) - A floor broker group has asked an appeals court to overturn a decision by the U.S. Securities and Exchange Commission to approve the New York Stock Exchange's (NYX.N: Quote, Profile, Research) "hybrid" market, which is set to bring more automation to the Big Board's floor, a court filing shows.
New US stock rules seen delayed, possibly scrapped
UPDATE 4-Nasdaq raises stake in LSE to 18.7 pct
US SEC's Nazareth supports penny options trading
The Independent Broker Action Committee (IBAC), an alliance of NYSE floor brokers and members, on April 25 filed a petition in the U.S. Court of Appeals for the District of Columbia, asking that the decision be sent back to the SEC for reconsideration.
The petition claims that the SEC failed to address the issue that "by discriminating against floor brokers" the hybrid will "seriously damage their businesses and business prospects and consequently harm the investing public".
The NYSE won approval in March from the SEC to adopt wider use of automated trading systems that are bringing the world's largest stock market into the digital age.
The SEC approved the NYSE's "hybrid market" plan -- an attempt to blend the Big Board's traditional floor-based auction market with the sort of high-tech execution systems that already dominate securities trading in virtually every other major market in the world.
IBAC had complained about the hybrid model last year, saying it had reservations about the NYSE's deal to buy electronic trading company Archipelago Holdings Inc. and the hybrid market, and that it was committed to protecting the auction market model.
A spokesman for the NYSE said on Tuesday: "The implementation of the hybrid is continuing and we welcome any constructive input."
The SEC declined comment.
The SEC suffered a court blow earlier this month, involving a SEC rule aimed at making mutual fund directors more independent of funds' management after scandals embarrassed the $9.2 trillion industry.
In a win for a business lobbying group that has twice sued the SEC over the rule, the court found the commission last year made procedural errors in handling the measure and said it will be struck down if the SEC does not reconsider within 90 days.
The Chamber of Commerce sued the SEC after the rule was adopted. Last June, the appeals court gave the chamber a partial win by finding flaws in how the rule was developed and sent it back to the SEC "to address the deficiencies."
The five-member SEC then reaffirmed the rule within days. The chamber sued again after that, alleging improper procedure.
© Reuters 2006. All Rights Reserved.
yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060502:MTFH45893_2006-05-02_22-20-20_N02394345&symbol=NYX.N&rpc=44