Commentary

Ronald Jordan
Traders Magazine Online News

Understanding Your Data is No Longer Optional

In this contributed article from Global Markets Advisory Group, the advisory discusses the importance of data and how organizations should augment existing skill sets and capabilities to add a data-focused perspective to their operating fabric.

Traders Poll

Do you expect SEC Chairman Jay Clayton to push for regulation in the cryptocurrency issuance and trading markets?

Yes

74%

No

5%

The CFTC will push for regulation

21%

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August 31, 2001

Online Trading Controls Are Inadequate

By Gregory Bresiger

Several regulators and much of the securities industry aren't doing enough to warn investors about online trading, says one government agency that is studying the issue.

The Securities and Exchange Commission, the National Association of Securities Dealers and, most of all, broker dealers are among those that must do more to prevent investors who trade online from hurting themselves. That's according to a recent report of United States General Accounting Office.

The regulators and the brokerages are failing to provide investors with adequate warnings at Web sites, the GAO said. A big oversight, the GAO said, was the failure to adhere to a NASD rule that requires disclosure of margin regulations to investors who are online traders. The GAO report found about one third of brokerages were not meeting this standard. The report calls for the SEC to "ensure conspicuous plain English disclosure of margin risk."