NYSE hit with $9 million SEC penalty over 2023 market disruption

The New York Stock Exchange (NYSE) agreed to pay a $9 million penalty to the US Securities and Exchange Commission (SEC) to settle charges stemming from a technology glitch on January 24, 2023. The disruption occurred because a configuration error left a backup disaster-recovery system running during overnight maintenance, causing the Pillar platform to incorrectly process opening auction data. Consequently, the exchange bypassed the standard opening auction for over 2,800 listed stocks, leading to sharp price movements, trading halts, and the cancellation of thousands of transactions. The SEC issued a cease-and-desist order, finding that NYSE violated federal regulations for critical trading infrastructure. Including nearly $6 million already paid to member firms for trading losses, the total financial cost of the malfunction is about $15 million. NYSE has since implemented additional safeguards to improve system monitoring and resilience.

(Source：Crypto Briefing)