Article: NYSE, SEC Reach Settlement in Specialists Fraud Case.(New York Stock Exchange)(Securities and Exchange Commission)

The New York Stock Exchange has agreed to a settlement with the Securities and Exchange Commission over charges brought last week against former NYSE specialists for alleged securities fraud violations.

The SEC said that the NYSE, over a nearly four-year period, had failed to police specialists who are accused of having engaged in widespread and unlawful proprietary trading.

Without admitting or denying the regulator's findings, the NYSE agreed Tuesday to fund audits of its regulatory program every two years through 2011, at a cost of $20 million. The exchange also will implement a pilot program for video and audio surveillance on its trading floor for ...

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