{"id":5627,"date":"2014-06-06T00:00:00","date_gmt":"2014-06-06T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/06\/sec_sues_wedbush_securities_an"},"modified":"2022-03-11T13:11:58","modified_gmt":"2022-03-11T19:11:58","slug":"sec-sues-wedbush-securities-an","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-sues-wedbush-securities-an\/","title":{"rendered":"SEC Sues Wedbush Securities and Dark Pool Operator Liquidnet Over Regulatory Violations"},"content":{"rendered":"\n

The Securities and Exchange Commission has filed a civil case against Wedbush Securities Inc. and two of its officials. The regulator claims they violated a rule that mandates that firms have proper risk controls in place before giving customers market access.<\/p>\n

According to the SEC order, between 2011 through 2013 Wedbush allowed most of its market access customers to send orders straight to U.S. Trading venues and did not keep up direct and sole control over trading platform settings. Customers used these platforms to transmit orders to the markets.<\/p>\n

The Commission contends that Wedbush should have had the mandated pre-trade controls in place. It claims that the firm failed to perform a yearly review of its risk management controls related to market access and did not limit trading access to people that the firm had authorized and pre-approved. As a result, overseas traders who were never approved and may not have been in compliance with U.S. laws ended up having market access.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Securities and Exchange Commission has filed a civil case against Wedbush Securities Inc. and two of its officials. The regulator claims they violated a rule that mandates that firms have proper risk controls in place before giving customers market access. According to the SEC order, between 2011 through 2013 Wedbush allowed most of its […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3985],"tags":[3436,3157],"class_list":["post-5627","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-wedbush-securities","tag-ats","tag-dark-pool"],"yoast_head":"\nSEC Sues Wedbush Securities and Dark Pool Operator Liquidnet Over Regulatory Violations — Investor Lawyers Blog — June 6, 2014<\/title>\n<meta name=\"description\" content=\"The Securities and Exchange Commission has filed a civil case against Wedbush Securities Inc. and two of its officials. 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