NYSE Regulation Inc. announced today it has censured and permanently barred three former specialists with LaBranche & Co. LLC as part of its continuing investigation and prosecution of illegal trading ahead of customer orders by specialists.

The three traders each failed to appear and provide additional investigative testimony about possible misconduct during the period 1999 through June 2003 to the NYSE Division of Enforcement. In settling this matter, they neither admitted nor denied the charge.

“These three individuals chose expulsion from the industry rather than face further questioning. The actions taken against them exemplify the importance we place upon protecting the integrity of the marketplace by requiring full cooperation in investigations,” said Susan Light, vice president enforcement, NYSE Regulation. “NYSE Regulation is continuing to pursue those specialists and clerks who abused the public’s trust and disadvantaged customer orders.”

The trio’s former specialist firm, LaBranche & Co., settled this matter in March 2004, without admitting or denying guilt, agreeing to a total payment of US$63,518,760.