The SEC is considering revising broker registration rules to strengthen cross-market and over-the-counter trading supervision.

BlockBeats reported on August 24th that the U.S. Securities and Exchange Commission (SEC) announced its consideration of final revisions to the rules related to brokers registered with the National Association of Securities Dealers (NASD) in order to determine which brokers need to register with the NASD, such as the Financial Industry Regulatory Authority (FINRA). This revision by the SEC involves Rule 15b9-1, which was expanded in 1976. The rule was initially established in the 1960s to allow a limited number of exchange floor members to not become members of the NASD. However, with the rapid changes in the market, especially the rise of high-frequency trading, many brokers have engaged in a large amount of activity across exchanges or over-the-counter. However, some brokers still rely on outdated exemptions from NASD registration, which has resulted in a regulatory gap. Therefore, these revisions update and narrow the circumstances under which brokers do not need to register with the NASD. NASD membership will help strengthen sound and consistent regulation, especially for the regulation of cross-market and over-the-counter trading. For example, companies joining FINRA will increase transparency and strengthen regulation in the government bond market, as FINRA requires its members to report post-trade activity in these markets. The SEC stated that this will benefit investors and promote fair, orderly, and efficient markets.