The regulatory arm of the New York Stock Exchange levied fines
for trading violations against LaBranche & Co. (LAB) and
TradeBot Systems Inc., a Kansas City trading outfit.
All consented to the findings without admitting or denying
guilt.
NYSE Regulation said Wednesday in its monthly regulatory report
that it imposed a $175,000 fine and a $25,000 fine on LaBranche
& Co. and Michael Ayres for multiple penalties organized into
three cases. The firm's misdeeds, according to the regulator, was
failing to give precedence to options orders it didn't have an
interest in. For Ayres, he allegedly "inappropriately 'froze' the
NETS Display Book, thereby failing to maintain a fair and orderly
market."
Tradebot Systems, which uses computer programs to take advantage
of small price discrepancies in buying and selling stocks, paid a
$125,000 fine for short-selling violations.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com