Broker-Dealer and Officials Agree to Settle SEC Market Access Violation Charges

The SEC announced that Wedbush Securities Inc. ("Wedbush"), an SEC-registered broker-dealer that has ranked consistently as one of the five largest firms by trading volume on NASDAQ, agreed to settle a pending SEC case for violations of Exchange Act Rule 15c3-5 ("Risk Management Controls for Brokers or Dealers with Market Access" or the "Market Access Rule").

The Market Access Rule requires a broker-dealer to establish, document and maintain a system of risk management controls and supervisory procedures reasonably designed to manage financial, regulatory and other risks while providing its customers with access to the securities markets.

The SEC order found that Wedbush violated, among other things, the Market Access Rule by failing to have adequate risk controls in place.

Wedbush's former executive vice president and senior vice president both agreed to settle the charges against them for their part in the violations of the Market Access Rule.

See: SEC Press Release and Orders. Related news: SEC Announces Charges against Broker-Dealer with Market Access Violations (with Lofchie Comment) (June 6, 2014).