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Brokers Warned Not to Steer Clients’ Stock Trades Into Slow Lane

  • Sluggish data cited as potential harm to brokers’ clients
  • Potential bombshell tucked into footnote of Finra notice

Brokers have been put on notice: treat your customers’ orders as well as you treat your own.

The Financial Industry Regulatory Authority, Wall Street’s self-regulator, recently said firms using the fastest, most expansive price databases for their own stock trading must also use those so-called direct feeds when handling client orders. That means they can’t just rely on the decades-old repository known as the SIP -- which gives a slower view of trading that critics say exposes investors to predators.