5 NYSE firms to pay $240 mn for SEC settlement

Five New York Stock Exchange specialist firms tentatively agreed to pay $ 240 million in a settlement with the Securities and Exchange Commission to avoid civil charges for allegedly mishandling trades and skimming profits, sources said.

The five firms have agreed to pay $155 million to disgorge their allegedly illegal profits, and another $85 million in fines, sources said here last night. The deal will not be final, however, until all five firms officially agree on all of the provisions in the settlement. The full commission, due to meet tomorrow, must also approve it. NYSE officials had worked with the SEC on the case, though it was not clear whether the deal would also include a resolution of NYSE rules violations.