A surveillance program by Wall Street’s self-funded regulator has seen a huge decline in alerts that may indicate potential market manipulation, after it launched a new initiative last year to help brokerages spot problematic clients.
Robert Cook, the chief executive at the Financial Industry Regulatory Authority, announced at the group’s annual conference on Wednesday that FINRA has seen a 68 percent drop in “layering exceptions,” or possible indications of a type of manipulative trade.
Last spring, FINRA said it would start alerting brokerage firms in monthly cross-surveillance report cards about cases where the regulator detected potentially manipulative trades by clients who were granted direct access to U.S. markets.
Read the original article here: reuters.com
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