NYSE Regulation Disciplinary Actions - January

NYSE Regulation reported fines and sanctions against two member firms and five individuals for violating NYSE, NYSE Arca, or NYSE Alternext rules involving:  prearranged trading;  sales practices; outside business activities;  deceptive mutual fund practices;  options trading. 

Schonfeld Securities, StevenB. Schonfeld, Principal - $1.1M fine, 3-month bar.  From January  through March 2005, firm entered and executed prearranged round trip securities transactions with related entities.  The purpose:  to increase firm's net capital.  Firm also did not aggregate hundreds of odd late trades. [NYSE Arca]

Gregory Gray, Jr. - 3-year bar.   Effected unauthorized trades in 2 customer accounts, then threatened and harassed them when they complained.  Two were senior citizens. [NYSE]

Steven Cronin -  $50K fine, 4-month suspension.   Between January 2003 and March 2004, engaged in undisclosed outside business and profit-sharing arrangement, referring customers to that 3rd partyfor Nasdaq trading in exchange for between $60-90K a month, plus $950K compensation for lost profits.  [NYSE] 

Trinity Derivatives Group -  $35K fine.   From October 2004 to November 2005, on certain occasions failed to give precedence to options orders entrusted to them.  [NYSE Alternext] 

Schonfeld Securities, StevenB. Schonfeld, Principal - $1.1M fine, 3-month bar.  From January  through March 2005, firm entered and executed prearranged round trip securities transactions with related entities.  The purpose:  to increase firm's net capital.  Firm also did not aggregate hundreds of odd late trades. [NYSE Arca]

Gregory Gray, Jr. - 3-year bar.   Effected unauthorized trades in 2 customer accounts, then threatened and harassed them when they complained.  Two were senior citizens. [NYSE]

Steven Cronin -  $50K fine, 4-month suspension.   Between January 2003 and March 2004, engaged in undisclosed outside business and profit-sharing arrangement, referring customers to that 3rd partyfor Nasdaq trading in exchange for between $60-90K a month, plus $950K compensation for lost profits.  [NYSE] 

Trinity Derivatives Group -  $35K fine.   From October 2004 to November 2005, on certain occasions failed to give precedence to options orders entrusted to them.  [NYSE Alternext]