What Market Access Is and Which Firms It Binds

What this video covers

• How the market access definition has two branches: being a member of an exchange or subscriber to an alternative trading system (ATS), and ATS operator access given to a non-broker-dealer
• Why the ATS operator branch does not require membership or subscription, and why it reaches only access provided to a non-broker-dealer
• Why the rule covers trading in all securities on an exchange or ATS, and why equities, options, exchange-traded funds, debt securities, and security-based swaps are examples rather than a closed list
• Why proprietary trading remains inside the rule even when existing risk management controls substantially satisfy the duty
• Which broker-dealers must establish, document, and maintain reasonably designed controls when they have access or provide it through a market participant identifier (MPID) or otherwise
• What financial, regulatory, and other risks the controls must address, including applicable federal securities laws and self-regulatory organization (SRO) rules
• Which records must be preserved for three years after termination of use, which firms fall outside the rule, and why the erroneous-order control survives the routing broker exception