SEC prohibits "naked access" to exchanges

11/3/2010 | Bloomberg · Wall Street Journal, The · MarketWatch

The Securities and Exchange Commission, in an effort to prevent disruption in the market, agreed to ban brokers from allowing high-frequency traders unsupervised and unfiltered access to stock exchanges. "We are concerned that order-entry errors in this setting can disrupt markets and, suddenly and significantly, make a broker-dealer or other market participants financially vulnerable," said SEC Chairman Mary Schapiro.

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Bloomberg · Wall Street Journal, The · MarketWatch

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