Commentary

Erik Hoel
Traders Magazine Online News

Will The Bitcoin Bubble Pop Or Will It Envelop Us All?

Guest contributor Erik Hoel asks the question whether the worst is over for bitcoin holders, or still yet to come, what is yet to come? And why.

Traders Poll

In your opinion, what is the biggest hurdle facing the blockchain?

Cost of implementation

17%

Too many systems available

23%

Not applicable to my business

3%

Uncomfortable with the technology

33%

Nobody else is using it

23%

Free Site Registration

April 1, 2003

Firms Face SEC Best Execution Actions

By Gregory Bresiger

The Securities and Exchange Commission is about to launch a series of enforcement actions against firms that aren't meeting best execution standards, according to people familiar with the situation.

One published report said the SEC is in "a get-tough mode" with broker dealers that do not use order routing information to provide best execution.

Tough Steps

Lori Richards, director of the Office of Compliance Inspections and Examinations, said the SEC is going to become "very aggressive" on best execution enforcement.

A former SEC official said that the agency generally had not been forceful in this area.

"That's because best execution is a very difficult kind of enforcement action," Mark Borrelli, a former assistant regional director in enforcement for the SEC, told Traders Magazine.

Borrelli said that he doesn't expect to see many best execution only enforcement actions. He predicts that they will be coupled with other potential violations such as conflict-of-interest charges.

"Best execution is an area that the SEC has traditionally shoved into the background," Borrelli said.

The Problem

Best execution standards are often nebulous, many trading industry executives have charged. "The standard requires the regulators to recreate a market," Borelli said. And that, he conceded, is a very difficult exercise.