Today's meeting of SEC Commissioners kicks off with a critical vote concerning market access provided by brokers or dealers.  They will likely adopt new SEA Rule 15c3-5, Risk Management Controls for Brokers or Dealers with Market Access ('34 Sec. Exch. Act).  As proposed, brokers or dealers with access to trading directly on an exchange or ATS, including those providing sponsored or direct market access to customers or other persons, will be required "to implement risk management controls and supervisory procedures reasonably designed to manage the financial, regulatory, and other risks of this business activity."  It also would would effectively prohibit B/D's from providing "unfiltered" or "naked" sponsored access to any exchange or ATS.

By adopting this rule, the SEC would use Compliance as a weapon, effectively to deter a "politically incorrect" element of trading.  Note the word "deter."  It has a better fit than, say, "prevent," which rarely happens.  Financial Services always finds a way to circumvent the rules ... or to adapt to them - i.e., perhaps B/D's will find that it can profitably provide access while keeping its risk exposure at manageable levels. 

Which means the future of sponsored access, at least in the near-term, is in Compliance's hands. 

Get started.  And, Be Ready!