How long must records be retained according to New York Stock Exchange rules?

The correct answer is three years because the New York Stock Exchange (NYSE) has specific rules that require firms to retain certain records for a minimum of three years. This retention period is established to ensure that financial records, communications, and other relevant documents are available for audits, investigations, and regulatory reviews. The three-year requirement allows sufficient time for any discrepancies or issues to be addressed and ensures compliance with legal and regulatory obligations.

Retaining records for this period also aligns with best practices for transparency and accountability in financial services, as it helps to protect both the firm and its clients by providing a historical record of transactions and communications. This timeframe is considered adequate to capture a range of activities and to fulfill potential requests for information by regulatory bodies.