SEC: Unfettered market access nixed for B-D customers

Broker-dealers will be required to have risk controls in place before providing customers with market access under an SEC adopted last month. The new rule prohibits broker-dealers from providing customers with naked access to an exchange or alternative trading system, along with requiring broker-dealers to implement procedures to help prevent erroneous orders and ensure compliance with regulatory requirements. For more information, read Risk Management Controls for Brokers or Dealers with Market Access.

Related Topics: Regulatory Moves