Regulatory Scrutiny Continues on Broker-Dealer Payments for Order Flow, March Madness – NCAA Players Scammed, Resources on the Latest DOL Prohibited Transaction Exemption and More: Lessons Learned and Worth Reading Update for March 2021 | Hardin Compliance Consulting LLC
Lessons Learned Payment for Order Flow Gets Another Broker into Hot Water for Undisclosed Conflicts. The SEC found Lightspeed Trading, LLC (“Lightspeed”), formerly a registered broker-dealer, guilty of securities fraud for lying to customers and profiting from lower “market center fees” charged by its affiliate for executing trades. In 2012, Lightspeed started offering customers access to an equity trading platform that allowed them to select the exchange or trading venue for executing their orders. Unfortunately, that freedom of choice was an illusion. Lightspeed actually sent many ...