SEC Adopts Rule Requiring Risk Management Controls for Market Access

On November 3, 2010, the SEC adopted the final version of Rule 15c3-5 under the Securities Exchange Act of 1934, which will impose a series of risk management controls and supervisory procedures on brokers and dealers that have access to trading securities directly on an exchange or an alternative trading system (“ATS”), that provide such access to customers via sponsored access or direct market access arrangements, or that operate an ATS and provide non-broker-dealers access to the ATS for trading securities.