Identifying Pre-Trade Risk Controls

What this video covers

• The four controls that must be reasonably designed to ensure compliance with all regulatory requirements
• Why three controls operate at or before order entry, while execution reports arrive after the trade
• How pre-order compliance covers Securities and Exchange Commission (SEC) Regulation SHO marking and locate requirements, National Market System (NMS) rules, exchange order-type rules, trading halts, and odd-lot orders
• Why restricted-securities controls apply to the broker or dealer, the customer, and any other person, with no agency loophole
• What access controls require for pre-approved and authorized persons and accounts, including vetting, identity validation, and physical security
• Why appropriate surveillance personnel must receive immediate post-trade execution reports, while surveillance analysis happens in a timely fashion based on the facts and circumstances