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News Summary: CBOE paying $6M to settle SEC case

The Associated Press

BIG OPTIONS EXCHANGE FINED: The largest U.S. options exchange has agreed to pay a $6 million penalty to settle federal charges that it failed in its duty to enforce trading rules.

FAILED OVERSIGHT: The Securities and Exchange Commission says the penalty being paid by the Chicago Board Options Exchange was the first imposed against an exchange for failures of regulatory oversight. The alleged failures occurred from 2008 to 2012.

SHORT-SELLING: The SEC said the exchange failed, among other things, to prevent abusive short-selling by a member firm. Short-selling is when a trader bets that a stock will lose value.