Should online brokerages curb risky trades?

Article Abstract:

The securities industry is divided whether to impose suitability requirements on online brokers. Suitability requirements require brokers to recommend products suited to customers. Proponents of extending the requirement to the online world say online brokers should not allow their customers to engage in risky trades. Critics, on the other hand, say suitability cannot be appropriately applied to online brokers, who do not dispense advise but merely act as a conduit.

Public affairs

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Day-trading firms probed

Article Abstract:

The state securities regulators are probing day-trading investment companies for possible questionable practices such as engaging in deceptive advertising and allowing investors without proper licenses to trade accounts for others. Philip Feigin, executive director of the North American Securities Administrators Association, said these companies are likewise being investigated for likely pressuring investors to get loans for investment purpose and for offering fraudulent training courses as well. Earlier, the now-defunct Block Trading's Boston, MA, office was sued by the state of Massachusetts for alleged questionable practices.

Comment:

State securities regulators are probing day-trading investment firms for likely questionable practices such as false advertising

Government regulation (cont), Article

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E-Trade to offer choice of how trade is made

Article Abstract:

Cyberbrokerage E-Trade's plans will allow its clients select between conventional "market makers," entities that are currently handling most trades, and an Electronic Communications Network (ECN), which handles trades electronically without using intermediaries. According to ECNs, which allow sellers and buyers to deal directly, they offer a better price for investors by eliminating an intermediary company. E-Trade will route their orders to Archipelago, an ECN, which is 25% owned by E-Trade.

Marketing procedures, Stock Brokerage, Cyberbrokerage E-Trade

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