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…
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.
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