Recent Developments in the Regulation of Clearing Brokers
HENRY F. MINNEROP
(Mem‐ber of the New York Bar, is a partner at Brown & Wood LLP in New York. Mr. Minnerop is a litigator who practices securities law and represents clearing brokers, and has acted as counsel to the Clearing Firms Committee of the Securities Industry Association, Inc.)
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Abstract
A spate of micro‐cap stock fraud cases in the 1990s has led the SEC to focus on the conduct of clearing brokers whose introducing firms acted as underwriters or market makers of new small‐cap issues. This article outlines the SEC's regulatory and enforcement guidelines regarding the clearing brokers, and shows that the agency's position encourages the continued growth of clearing arrangements while giving it flexibility to sanction clearing firms in appropriate cases.
Citation
MINNEROP, H.F. (2000), "Recent Developments in the Regulation of Clearing Brokers", Journal of Investment Compliance, Vol. 1 No. 1, pp. 27-34. https://doi.org/10.1108/eb045868
Publisher
:MCB UP Ltd
Copyright © 2000, MCB UP Limited