National Securities Exchanges and Affiliated Routing Broker Agree to Censure and Remedial Undertakings

Respondents were charged with violations of securities laws and rules, and with failing to comply with their own internal rules, based on systems problems at the all-electronic exchanges. In the first alleged incident, untested computer code changes resulted in overfilled orders of roughly $773 million and, in resolving the overfilled trades, the routing broker failed to mark the orders as short or mismarked them as long (and accordingly failed to locate or document the availability of shares to borrow before selling short). In the second incident, respondent EDGX’s database administrator inadvertently disabled database connections, disrupting the processing of incoming orders, modifications, and cancellations, and leading to loss claims of more than $668,000.