Brokers Need More Discipline to Avoid Trading Errors, Finra Says

Debacles like Knight Capital Group Inc.’s August trading loss will be avoided if brokers exercise more vigilance overseeing their risk controls, according to the head of the Financial Industry Regulatory Authority.
Rules requiring brokers to check orders before sending them to markets to ensure they’re correct and don’t exceed capital and credit thresholds went into effect last year. While most firms are complying, more discipline is needed overseeing operations and risk, Richard Ketchum, CEO of Finra, said at a Security Traders Association conference in Washington yesterday.
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