Market Access: Rapid Fire

What this video covers

• Which broker-dealers are covered by the market access rule, including access to an exchange or alternative trading system (ATS) and access provided to a non-broker-dealer
• The difference between direct market access and sponsored access, and why unfiltered or naked access is prohibited
• How financial controls reject orders before entry when they exceed pre-set credit or capital thresholds, price or size parameters, or indicate erroneous and duplicative orders
• The four named regulatory controls: pre-order requirements, restricted securities, authorized system access, and immediate execution reports to surveillance personnel
• Why market maker quotes are treated as orders, and when manual controls are permitted for purely manual orders
• The narrow allocation exception for specific regulatory controls, including the written contract, thorough due diligence, non-proprietary trading requirement, and retained responsibility
• How routing broker exceptions, open orders, venue sub-limits, annual reviews, chief executive officer (CEO) certification, and three-year record retention work