SEC Extends 'Naked Access' Rule Compliance

Law360, New York (June 27, 2011, 9:51 PM EDT) -- The U.S. Securities and Exchange Commission said Monday that it will delay compliance with a rule banning the practice of "naked access" where clients trade online using a broker’s market participant identifier without the broker ever reviewing the trades.

In a notice, the agency pushed back the rule's compliance date to Nov. 30 from July 14 after broker-dealer groups requested an extension.

The rule requires brokers to verify that all automated trades entered under their authority are compliant with securities laws and regulations before those trades...
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