CBOE to pay $6 mln to settle U.S. SEC charges of regulatory failures
WASHINGTON, June 11 (Reuters) - The Chicago Board Options Exchange will pay a $6 million penalty and implement "major remedial measures" to settle civil charges alleging the exchange failed in its regulatory oversight duties and made numerous missteps in properly enforcing short sale rules, U.S. regulators said on Tuesday.
The U.S. Securities and Exchange Commission said the financial penalty against the exchange operator and C2 Options Exchange, an affiliate, marks the first ever to be levied against an exchange in connection with violations of its duty to self-police its marketplace.
Some of the problems the SEC uncovered at CBOE are related to the inadequate self-policing of optionsXpress, a firm now owned by Charles Schwab that was ordered by an SEC judge last Friday to pay a penalty for illegally selling shares it did not own.
(Reporting by Sarah N. Lynch; Editing by Phil Berlowitz)