SEC Proposes New Rule Blocking Unfiltered Market Access to Broker-Dealer Customers | Practical Law

SEC Proposes New Rule Blocking Unfiltered Market Access to Broker-Dealer Customers | Practical Law

An update on a proposed SEC rule prohibiting customers from placing orders directly on US securities exchanges or alternative trading systems (ATS) without first having those orders prescreened by their broker-dealers to ensure compliance with applicable regulatory requirements. A broker or dealer would be required to establish, document and maintain a system of risk-management controls and supervisory procedures designed to manage risks related to market access.

SEC Proposes New Rule Blocking Unfiltered Market Access to Broker-Dealer Customers

Practical Law Legal Update 5-501-2689 (Approx. 3 pages)

SEC Proposes New Rule Blocking Unfiltered Market Access to Broker-Dealer Customers

by PLC Corporate & Securities
Published on 20 Jan 2010USA (National/Federal)
An update on a proposed SEC rule prohibiting customers from placing orders directly on US securities exchanges or alternative trading systems (ATS) without first having those orders prescreened by their broker-dealers to ensure compliance with applicable regulatory requirements. A broker or dealer would be required to establish, document and maintain a system of risk-management controls and supervisory procedures designed to manage risks related to market access.