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New documents may shed light on what NYSE knew about `flipping'
Washington, Feb 18: The US Attorney's office and the Securities and Exchange Commission (SEC) are looking into the origins of new documents related to what the New York Stock Exchange knew about questionable trading by floor brokers in the early 1990s.In a recent deposition, an NYSE official said he had met with officials from both the SEC and from the US Attorney's office to discuss documents related to "intra-day" trading. In 1998, the US Attorney's office in Manhattan charged a group of NYSE floor brokers with exploiting knowledge of big orders on the floor to make quick trades and then split the profits with Oakford Corp, a now defunct brokerage firm. Because of their access to information about the flow of orders in stocks that the public lacks, floor brokers are barred by securities law from trading for their own account, or sharing in the profits generated by their own trading. The Wall Street Journal Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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