Cost of non-compliance

The hack of the Central Command’s Twitter feed and Yahoo account at the same time as the President’s speech about cybersecurity– not sure I can add anything there.

Another story caught my eye.  Maybe it was just innovation.  Or maybe taking unfair advantage of the level-ish playing field. Or the perils of acquisitions.

“SEC Fines BATS Over Disclosure On Orders,” Wall Street Journal, January 13, 2015 C3.   The SEC fined BATS $14 million for an alleged failure to disclose details of order types that gave some high-speed traders an advantage, as if they needed more of an edge.  A company that merged into BATs had created the unusual order types for two particular trading firms but apparently didn’t tell the market how these order types actually worked.  A record fine for a stock exchange.

If you give somebody preferential treatment and want to hide it from others, that may be a sign of a problem.  Faster access to market information or faster execution of trades are two of those preferences that are subject to heightened scrutiny. And this investigation arose from a whistleblower’s complaint.


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Filed under Board, Business Case, Controls, Governance, Inform market, Information, Internal controls, Operations, Oversight, Oversight, Risk, Use, Value

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