Sanford C. Bernstein & Co., Llc

Allegations: **11/06/2012** FROM JANUARY 2009 THROUGH NOVEMBER 2011, THE FIRM ENTERED AND RECEIVED EXECUTION ON 50 ORDERS THAT CONTAINED INCORRECT ACCOUNT TYPE INDICATORS IN VIOLATION OF NYSE AMEX RULE 955NY(B). IN ADDITION, THROUGHOUT THE RELEVANT PERIOD THE FIRM VIOLATED NYSE AMEX RULE 320(E) BY FAILING TO SUPERVISE AND IMPLEMENT ADEQUATE CONTROLS REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH NYSE AMEX RULE 955NY(B). SPECIFICALLY, THE FIRM CONTINUED TO ENTER ORDERS INTO ITS ORDER MANAGEMENT SYSTEM DESPITE BEING AWARE THAT IT HAD A CODING ISSUE THAT COULD, AND DID, RESULT IN CERTAIN ORDERS BEING MISMARKED. Status: Final Sanction Detail: **FINAL 12/07/2012** FROM JANUARY 2009 THROUGH NOVEMBER 2011, THE FIRM ENTERED AND RECEIVED EXECUTION ON 50 ORDERS THAT CONTAINED INCORRECT ACCOUNT TYPE INDICATORS IN VIOLATION OF NYSE AMEX RULE 955NY(B). IN ADDITION, THROUGHOUT THE RELEVANT PERIOD THE FIRM VIOLATED NYSE AMEX RULE 320(E) BY FAILING TO SUPERVISE AND IMPLEMENT ADEQUATE CONTROLS REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH NYSE AMEX RULE 955NY(B). SPECIFICALLY, THE FIRM CONTINUED TO ENTER ORDERS INTO ITS ORDER MANAGEMENT SYSTEM DESPITE BEING AWARE THAT IT HAD A CODING ISSUE THAT COULD, AND DID, RESULT IN CERTAIN ORDERS BEING MISMARKED. NYSE AMEX RULE 955(B) - REQUIRED ORDERS TO BE SENT TO THE EXCHANGE FOR EXECUTION TO COMPLY WITH THE ORDER FORMAT REQUIREMENTS. 20 INSTANCES DURING THE RELEVANT PERIOD THE FIRM ENTERED AND RECEIVED EXECUTIONS ON PROPRIETARY FIRM ORDERS THAT WERE INCORRECTLY MARKED AS CUSTOMER ORDERS. 30 INSTANCES DURING THE RELEVANT PERIOD THE FIRM ENTERED AND RECEIVED EXECUTIONS ON CUSTOMER ORDERS THAT WERE INCORRECTLY MARKED AS PROPRIETARY FIRM ORDERS. NYSE AMEX RULE 320(E) - THE MISMARKED ORDERS NOTED WERE THE RESULT OF A PROGRAMMING DEFECT WITH THE FIRM'S THIRD-PARTY ORDER MANAGEMENT SYSTEM. THE FIRM BECAME AWARE OF THE PROGRAMMING DEFECT, WHICH AFFECTED A SMALL PERCENTAGE OF ORDER, IN OR ABOUT THE FALL OF 2009, BUT CONTINUED TO USE THE ORDER MANAGEMENT SYSTEM UNTIL MAY 2012 WHEN THE PROGRAMMING DEFECT WAS CORRECTED. FINE WAS PAID BY THE FIRM IN FULL ON DECEMBER 20, 2012. Summary: DECISION BECAME FINAL AT CLOSE OF BUSINESS ON JANUARY 2, 2013. FINE WAS PAID BY THE FIRM IN FULL ON DECEMBER 20, 2012.

Allegations: THE ACTS, PRACTICES, AND CONDUCT DESCRIBED BELOW CONSTITUTE VIOLATIONS OF EXCHANGE RULE 3.6A BY SANFORD C. BERNSTEIN & CO., LLC FROM ON OR ABOUT AUGUST 13, 2013 THROUGH ON OR ABOUT JANUARY 1, 2015, SANFORD FAILED TO QUALIFY AND REGISTER ONE (1) ASSOCIATED PERSON[1] AS A PROPRIETARY TRADER PRINCIPAL (TP) WITH THE EXCHANGE IN WEBCRD. FROM ON OR ABOUT AUGUST 13, 2013 THROUGH ON OR ABOUT SEPTEMBER 2, 2014, SANFORD FAILED TO REGISTER A SECOND ASSOCIATED PERSON AS A PROPRIETARY TRADER PRINCIPAL (TP) WITH THE EXCHANGE IN WEBCRD. FROM ON OR ABOUT AUGUST 13, 2013 THROUGH ON OR ABOUT SEPTEMBER 2, 2014, SANFORD FAILED TO REGISTER ITS CO-CHIEF COMPLIANCE OFFICER AS A PROPRIETARY TRADER COMPLIANCE OFFICER (CT) WITH THE EXCHANGE IN WEBCRD. Status: Final Sanction Detail: NONE Summary: THE ACTS, PRACTICES, AND CONDUCT DESCRIBED BELOW CONSTITUTE VIOLATIONS OF EXCHANGE RULE 3.6A BY SANFORD.. FROM ON OR ABOUT AUGUST 13, 2013 THROUGH ON OR ABOUT JANUARY 1, 2015, SANFORD FAILED TO QUALIFY AND REGISTER ONE (1) ASSOCIATED PERSON[1] AS A PROPRIETARY TRADER PRINCIPAL (TP) WITH THE EXCHANGE IN WEBCRD. FROM ON OR ABOUT AUGUST 13, 2013 THROUGH ON OR ABOUT SEPTEMBER 2, 2014, SANFORD FAILED TO REGISTER A SECOND ASSOCIATED PERSON AS A PROPRIETARY TRADER PRINCIPAL (TP) WITH THE EXCHANGE IN WEBCRD. FROM ON OR ABOUT AUGUST 13, 2013 THROUGH ON OR ABOUT SEPTEMBER 2, 2014, SANFORD FAILED TO REGISTER ITS CO-CHIEF COMPLIANCE OFFICER AS A PROPRIETARY TRADER COMPLIANCE OFFICER (CT) WITH THE EXCHANGE IN WEBCRD. ALL NOTED INDIVIDUALS NOW APPROPRIATELY LICENSED PURSUANT TO CBOE RULE 3.6A.

Allegations: THE NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES ALLEGED THAT AXA EQUITABLE LIFE INSURANCE COMPANY VIOLATED NEW YORK INSURANCE LAW SECTION 4240(E) BY FILING PLANS OF OPERATION WITH RESPECT TO CERTAIN OF ITS SEPARATE ACCCUONTS WITH THE NEW YORK STATE INSURANCE DEPARTMENT AND NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES (COLLECTIVELY, THE "DEPARTMENT") WITHOUT ADEQUATELY INFORMING AND EXPLAINING TO THE DEPARTMENT THE SIGNIFICANCE OF THE IMPLEMENTATION OF THE AXA TACTICAL MANAGER STRATEGY. Status: Final Sanction Detail: AXA EQUITABLE LIFE INSURANCE COMPANY CONSENTED TO THE IMPOSITION OF A CIVIL PENALTY ON MARCH 17, 2014 IN THE SUM OF $20,000,000, AGREED TO SEEK ALL NECESSARY APPROVALS WITH REGARD TO NEW YORK INSURANCE LAW SECTION 4240(E) AND AGREED TO PROVIDE DEPARTMENTAPPROVED COMMUNICATIONS TO POLICYHOLDERS WHEN AXA EQUITABLE LIFE INSURANCE COMPANY IS REVISING FUND CHOICES IN CONNECTION WITH THE AXA TACTICAL MANAGER STRATEGY AND TO COMPLY WITH ANY OTHER CONDITIONS PLACED ON SUCH APPROVALS. AXA EQUITABLE LIFE INSURANCE COMPANY ALSO AGREED TO ISSUE A WRITTEN REPORT TO THE DEPARTMENT CONCERNING CHANGES TO THE PLAN OF OPERATIONS FOR CERTAIN OF ITS SEPARATE ACCOUNTS ON A QUARTERLY BASIS FOR A PERIOD OF FIVE YEARS FROM MARCH 17, 2014. Summary: THE MATTER WAS SETTLED ON MARCH 17, 2014, THE DATE AXA EQUITABLE LIFE INSURANCE COMPANY ENTERED INTO A CONSENT ORDER WITH THE DEPARTMENT CONSENTING TO THE SANCTIONS LISTED ABOVE.

Allegations: (1) THE FIRM ENTERED 34 ORDERS INTO THE NASDAQ MARKET CENTER THAT FAILED TO INDICATE THE CORRECT CAPACITY. (2) THE FIRM FAILED TO PROPERLY MARK 148 SELL ORDERS AS SHORT AND 59 SELL ORDERS AS LONG, AND AS A RESULT, ALSO INCORRECTLY FAILED TO DESIGNATE THE ABOVE 148 AND 59 SELL ORDERS AS SHORT AND LONG, RESPECTIVELY, WHEN ENTERING THEM INTO THE NASDAQ MARKET CENTER. Status: Final Sanction Detail: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS. THE FIRM IS CENSURED AND FINED $17,500.

Allegations: (1) FIRM FAILED TO TIMELY REPORT TO OATS 250,212 REPORTABLE ORDER EVENTS AND TRANSMITTED 32 NEW ORDER REPORTS AND RELATED SUBSEQUENT REPORTS WHERE THE TIMESTAMP WAS PRIOR TO ORDER RECEIPT TIME. (2) FIRM INCORRECTLY REPORTED TO THE FINRA/NASDAQ TRADE REPORTING FACILITY A CLEARING ONLY OR NON-TAPE, NON-CLEARING REPORT ON 6,921 OCCASIONS. TRANSACTIONS SHOULD HAVE BEEN REPORTED AS AGENCY, NOT AS RISKLESS PRINCIPAL. (3) FIRM EXECUTED 717 SHORT SALE TRANSACTIONS IN A PRINCIPAL CAPACITY AND FAILED TO PROPERLY MARK THE SALES AS SHORT. (4) FIRM FAILED TO SUBMIT 11 ROUTE OR COMBINED ORDER/ROUTE REPORTS TO OATS FOR 11 ORDERS, AND SUBMITTED 1,030 EXECUTION REPORTS TO OATS FOR 10 OF THOSE ORDERS THAT THE FIRM SHOULD NOT HAVE REPORTED. (5) FIRM FAILED ON 261 OCCASIONS TO OBTAIN A BONA FIDE BORROW OR A LOCATE FOR SHORT SALE TRANSACTIONS. (6) FIRM FAILED ON 60 OCCASIONS TO PROPERLY PROVIDE WRITTEN NOTIFICATION DISCLOSING TO ITS CUSTOMER ITS CORRECT CAPACITY. (7) FIRM'S SUPERVISORY SYSTEM DID NOT PROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH RESPECT TO CERTAIN APPLICABLE SECURITIES LAWS AND REGULATIONS. Status: Final Sanction Detail: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF THE FINDINGS. THE FIRM IS CENSURED, FINED $57,500, AND IS REQUIRED TO REVISE CERTAIN WRITTEN SUPERVISORY PROCEDURES.

Allegations: RULES 203(A)(1), 204(A)(1) OF REGULATION SHO - SANFORD C. BERNSTEIN & CO., LLC HAD FAIL-TODELIVER POSITIONS AT A REGISTERED CLEARING AGENCY IN SECURITIES THAT RESULTED FROM LONG SALES, AND DID NOT CLOSE THE FAIL-TO-DELIVER POSITIONS BY PURCHASING SECURITIES OF LIKE KIND AND QUANTITY WITHIN THE TIME FRAME PRESCRIBED BY RULE 204(A)(1) OF REGULATION SHO. THE FIRM KNEW OR HAD REASONABLE GROUNDS TO BELIEVE THAT THE SALE OF THE SECURITIES WAS OR WOULD BE EFFECTED PURSUANT TO AN ORDER MARKED LONG, AND FAILED TO DELIVER THE SECURITY ON THE DATE DELIVERY WAS DUE. Status: Final Sanction Detail: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED $45,000.

Allegations: RULE 611(C) OF REGULATION NMS - SANFORD C. BERNSTEIN & CO., LLC SENT AN INTERMARKET SWEEP ORDER (ISO) THAT FAILED TO SATISFY THE REQUIREMENTS OF RULE 600(B)(30) OF REGULATION NMS IN THAT THE FIRM FAILED TO TAKE OUT ALL PROTECTED, BETTER PRICED LIQUIDITY ON OTHER MARKETS, RESULTING IN A TRADE THROUGH OF SUCH BETTER PRICED PROTECTED QUOTATIONS AT OTHER REGULATION NMS PROTECTED VENUES. AS A RESULT, THE FIRM FAILED TO ROUTE ISOS TO ALL PROTECTED VENUES NECESSARY TO EXECUTE AGAINST THE FULL DISPLAYED SIZE OF PROTECTED BID OR OFFER FOR THE NATIONAL MARKET SYSTEM (NMS) STOCK WITH A PRICE SUPERIOR TO THE LIMIT PRICE OF THE LIMIT ORDER IDENTIFIED AS AN ISO. Status: Final Sanction Detail: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED $8,500.

Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, SANFORD C. BERNSTEIN & CO., LLC ("SCB" OR THE "FIRM") CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS, THAT SCB SUBMITTED MILLIONS OF TRANSACTIONS WITH DISCONTINUED ACCOUNT TYPE INDICATOR ("ATIS") FOR COMPARISON AND/OR SETTLEMENT. IN ADDITION, THE FIRM FAILED TO IMPLEMENT ADEQUATE SUPERVISORY SYSTEMS AND CONTROLS REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH NYSE RULE 132 PERTAINING TO THE SUBMISSION OF ATI CODES. THE FINDINGS STATED THAT THROUGH INFORMATION MEMO 02-59 (DECEMBER 17, 2002), NYSE PROVIDED TO MEMBER FIRMS A LIST OF ATIS THAT FIRMS WERE REQUIRED TO USE IN ORDER TO COMPLY WITH NYSE RULE 132. NYSE ISSUED UPDATED GUIDANCE ON THE USE OF ATIS IN, INTER ALIA, NYSE INFORMATION MEMOS 12-25 (OCTOBER 9, 2012) AND 16-2 (FEBRUARY 29, 2016) ("IM 16- 2"). THE SUBMISSION OF ACCURATE ATIS IS IMPORTANT BECAUSE, AMONG OTHER REASONS, NYSE AND FINRA USE AUDIT TRAIL DATA IN THE SURVEILLANCE REVIEW PROCESS, AND INACCURACIES IN THAT DATA CAN HAMPER THE ABILITY TO DETECT POTENTIALLY VIOLATIVE CONDUCT OR CREATE FALSE POSITIVE ALERTS REQUIRING THE UNNECESSARY EXPENDITURE OF RESOURCES. IM 16-2 SET FORTH "THE DEFINITIVE SOURCE FOR DEFINITIONS OF ACCOUNT TYPE INDICATORS FOR REPORTING REQUIREMENTS MANDATED UNDER EXCHANGE RULES." PURSUANT TO THE MEMO, THE NUMBER OF ACCEPTABLE ATIS WAS REDUCED TO FOUR, AND MEMBER FIRMS WERE REQUIRED TO DISCONTINUE THE USE OF ATI "Y" (AMONG OTHER DISCONTINUED ATIS) AS OF AUGUST 1, 2016. SCB FAILED TO IDENTIFY IM 16-2 OR THE RELEVANT CHANGES TO COMPLIANCE WITH NYSE RULE 132, AND, AS A RESULT, FAILED TO EFFECT REQUIRED CHANGES TO ITS TRADING INFRASTRUCTURE TO ACHIEVE COMPLIANCE WITH NYSE RULE 132. AS A RESULT, SCB SUBMITTED MORE THAN 24 MILLION ORDERS WITH THE ATI "Y" IN VIOLATION OF NYSE RULES 132 AND 7.33. THE FINDINGS ALSO STATED THAT ALTHOUGH SCB SUBMITTED MORE THAN 24 MILLION ORDERS WITH INACCURATE ATI CODES, IT FAILED TO IDENTIFY AND/OR SELF-REPORT ANY OF THESE VIOLATIONS IN PART BECAUSE THE FIRM'S SUPERVISORY SYSTEM WAS NOT REASONABLY DESIGNED TO REVIEW ATIS FOR COMPLIANCE WITH RULE 132 AND GUIDANCE SET FORTH IN IM 16-2. MOREOVER, THE FIRM'S WRITTEN SUPERVISORY PROCEDURES DID NOT SET FORTH A REASONABLY DESIGNED SUPERVISORY SYSTEM FOR MONITORING REGULATORY RULE CHANGES AND/OR GUIDANCE OR FOR IMPLEMENTING APPROPRIATE SYSTEM CHANGES RESULTING THEREFROM. ACCORDINGLY, SCB FAILED TO IMPLEMENT ADEQUATE SYSTEMS AND CONTROLS, INCLUDING A SEPARATE SYSTEM OF FOLLOW-UP AND REVIEW, REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH NYSE RULES 132 AND 7.33 (FOR CERTAIN ORDERS SENT AFTER JULY 27, 2017), IN VIOLATION OF NYSE RULE 3110. Status: Final Sanction Detail: THE FIRM WAS CENSURED AND FINED $100,000. THE FIRM IS REQUIRED TO REVISE ITS WRITTEN SUPERVISORY PROCEDURES TO ADDRESS THE DEFICIENCIES IDENTIFIED IN THE AWC. WITHIN 60 DAYS OF THE EXECUTION OF THE AWC, THE FIRM AGREES TO PROVIDE A CERTIFICATION THAT THE FIRM HAS REVISED ITS WRITTEN SUPERVISORY PROCEDURES TO ADDRESS THE DEFICIENCIES DESCRIBED IN THE AWC, AND THE DATE THE REVISED PROCEDURES WERE IMPLEMENTED.