FINRA aims to crack down on brokers after the "flash crash"

08/23/2010 | CNBC

Richard Ketchum, chairman and CEO of the Financial Industry Regulatory Authority, said brokers who do not properly check high-frequency traders to whom they gave access to the market could face potential fines. The regulator is looking into broker-dealers offering high-frequency traders access to the market after the May 6 "flash crash." "We're looking to find out if the brokers understood what was being done with the algorithm and whether the high-frequency trader had thought through how it would work under big market changes," Ketchum said.

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