MFA Submits Letter to SEC Regarding Computer Trading and Risk Management Issues

The MFA submitted a letter to the SEC regarding computer trading and risk management issues, suggesting that the SEC consider new tools to help prevent computer trading errors to better manage risks moving forward. Suggestions include possible enhancements to risk management and technology implementation controls and more routine testing of software. In addition, MFA suggested a number of rule obligations that it proposed should be imposed on broker-dealers, including a requirement of enhanced pre-trade controls and the designation of a particular individual at a broker-dealer who would have authority to suspend the firm's trading.

Cross-Reference(s): SEA Rule 15c3-5(c)(1)(i), (ii).

View in full here (links externally to MFA website).