SEC Penalizes Firm for Violating Market Access Rule

The SEC penalized Morgan Stanley Co. LLC for violating the market access rule when it failed to uphold credit limits for a customer firm with a "rogue trader" who engaged in the fraudulent trading of Apple stock.

The SEC found that that the firm did not have the risk management controls necessary to prevent the rogue trader from entering orders that exceeded pre-set trading thresholds.

See: SEC Order.