The fallout from yesterday’s indictments and regulatory sanctions concerning the trading of New York Stock Exchange specialists continued with the announcement of disciplinary sanctions against former specialists for failing to cooperate with the investigation.

NYSE Regulation announced that it has taken disciplinary actions against one member firm and seven individuals for violations of NYSE rules and federal securities laws. Of the seven individuals to face sanctions, one was a former exchange member and specialist who was found guilty, after a contested hearing, of failing to cooperate in an investigation by the NYSE Division of Enforcement.

NYSE says this disciplinary proceeding is an outgrowth of the continuing investigation by the exchange of individual responsibility for breaching the specialists’ duty as agent to public orders, which was the focus of major enforcement actions taken in 2004 against NYSE specialist firms. The NYSE imposed a censure and ban until the specialist complies with the exchange’s requests, which will become a permanent bar if he does not comply within 60 days.

Another former specialist consented without admitting or denying guilt to a finding that he failed to cooperate in an investigation by the NYSE Division of Enforcement. The NYSE imposed a censure and permanent ban against him.

Apart from the ongoing specialist investigation, the NYSE also disciplined individuals for sales practice misconduct; failure to cooperate with an investigation; and, failing to disclose criminal convictions.

Also, Fleet Securities Inc. consented without admitting or denying guilt to findings of financial, operational and supervisory deficiencies. An NYSE hearing panel found that the firm failed to exercise reasonable supervision with respect to certain required financial reporting calculations. The NYSE imposed a penalty of a censure and a $100, 000 fine. The firm consented to the penalty.