A New York-based subsidiary of the Intercontinental Exchange (ICE) has agreed to pay $8 million as part of a settlement with the Securities and Exchange Commission (SEC) for compliance deficiencies related to its provision of securities quotes to subscribers.
ICE Data Pricing & Reference Data, a registered investment adviser, failed to adopt “reasonably designed” policies and procedures to address the risk associated with valuing securities based on one source. The company’s policies and procedures were designed to create alerts when single-source quotes on securities were unchanged for more than 40 days. In practice, however, the alerts were ignored. Even when the policy was enhanced to produce alerts at 20 days, little changed in practice, the SEC said.
