Former NYSE Specialists Plead Guilty

Two former specialists with responsibility for supervising floor trades plead guilty to securities fraud. Assistant US attorney Lauren Goldberg said the pleas "are groundbreaking on their own because they are expected to change the tenor" of cases against a dozen other specialists facing criminal charges in a case brought last year. Sentencing is set for Aug 10. Jail time is almost a certainty. Scott Petersen the spokesman for NYSE Regulation Inc says that NYSE has made major changes since the charges have been filed. He went on to comment that the NYSE believes it is important to hold individuals accountable for their actions. The only way these individuals could have gotten away with it for so long is that the NYSE mother ship allowed it. While the charged individuals should do time the market needs assurances that governance at NYSE will catch this much sooner in the future.