SEC Floats Rules On High-Frequency Trader Registration

Law360, New York (March 25, 2015, 1:17 PM EDT) -- The U.S. Securities Exchange Commission on Wednesday voted unanimously to propose rules that would require high-frequency proprietary traders to register with a national securities association, a move intended to improve oversight of broker-dealers engaged in off-exchange trading.

The proposed amendments to Rule 15b9-1 would eliminate the current proprietary trading exemption and replace it with a narrower rule to exempt only off-exchange transactions by floor-based dealers that are solely meant to hedge the risks of its floor-based activities, according to the SEC. The new rule would subject...
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