Law360, New York (January 13, 2010, 8:03 PM ET) -- The U.S. Securities and Exchange Commission on Wednesday voted unanimously to propose a new rule that would attempt to prohibit broker-dealers from providing customers with unfiltered access to either an exchange or an alternative trading system.
Under the proposed rule, brokers with market access to an exchange or ATS would be required to put in place risk management controls and supervisory procedures.
The procedures would aim to prevent erroneous orders, ensure compliance with regulatory requirements and enforce credit or capital thresholds, the SEC said.
“Unfiltered access...
SEC Proposes Rule Banning Unfiltered Access
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