The firm was approved by the SEC to serve as the Regulatory Auditor for the NYSE from 2005 to 2013, following the SEC’s findings in a Consent Order that the NYSE had failed to police specialists who were “interpositioning” and “trading ahead” of customer orders. The firm’s engagement covered ongoing audits of regulatory policies and procedures, including interviews with regulatory personnel, review of business requirements and functional specifications for automated surveillance technology, IT testing of regulatory controls, and observation of trading activity on the NYSE floor. The firm provided comprehensive, bi-annual reports to the SEC and NYSE, as well as frequent, interim reports to the NYSE as it completed individual audit procedures.
The New York Stock Exchange (NYSE) is one of the world’s largest and most liquid equities stock exchange.