SEC proposes ending unfiltered access

In a recent open meeting, all five commissioners of the U.S. Securities and Exchange Commission (SEC) voted unanimously to release a proposed rule change that would end unfiltered, or naked, access to trading venues by buy-side firms. "[These] rules would require brokers who provide market access to others to put in place effective pre-trade risk management controls and supervisory procedures," says Mary Schapiro, chair of the SEC. "These controls would effectively prohibit unfiltered access.