Requirements for Direct Market Access and Sponsored Access

Read the Free Lesson → free · no signup wall

Chapters in this video

  1. 0:00 Market access order paths
  2. 0:32 DMA versus sponsored access
  3. 1:39 Unfiltered access and pre-trade controls
  4. 2:40 MPID responsibility follows the identifier
  5. 3:45 ATS subscriber liability rules
  6. 5:33 Rapid-fire market access recap

What this video covers

  • How direct market access routes customer orders through the broker-dealer's trading systems
  • How sponsored access bypasses those systems and may use a service bureau or other third-party technology provider
  • Why unfiltered or naked access is a subset of sponsored access, not a separate arrangement
  • Why access without pre-trade controls is prohibited for exchange and alternative trading system orders
  • Why responsibility follows the broker-dealer's market participant identifier (MPID), regardless of the order's routing path
  • How the same controls apply to proprietary trading, traditional agency trading, direct market access, and sponsored access
  • When an alternative trading system (ATS) operator owes risk management controls for non-broker-dealer subscribers

Read the full lesson, free

This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 57 course also includes adaptive practice questions and spaced-repetition flashcards, available in Free Beta.

Read the Free Lesson → free · no signup wall