SEC: Comments due on proposed ‘naked’ access ban
Input is due this month on a proposed rule aimed at preventing brokerage firms from providing customers with so-called naked access to an exchange or alternative trading system.
Input is due this month on a proposed rule aimed at preventing brokerage firms from providing customers with so-called naked access to an exchange or alternative trading system. In such a situation, customers can place an order that flows directly into the markets without being pre-screened by the broker-dealer or passing through its trading system. The SEC’s rule would require brokerages to establish risk management controls and supervisory procedures for those customer orders to prevent erroneous orders, ensure regulatory compliance and enforce preset credit or capital thresholds. For more details of the proposed rule or information on submitting comment by March 29, click here.
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