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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Shea who wrote (7877)	6/3/1999 4:37:00 PM
From: Bucky Katt	Read Replies (1) \| Respond to of 57584

What do you think of CMTO? A lot of selling on 144's, but it has some nice tech. Also, this is a thread must read>>http://www.bloomberg.com/bbn/topfin.html?s=7cca8e7c8027849700254b0e21a85403 This is the best part>The commission's staff also is drafting a second set of more controversial measures that would impose tougher fraud-detection requirements on clearing firms, said SEC market-regulation director Annette Nazareth. ''We're addressing early warning techniques that should enable us to better tackle micro-cap fraud,'' said Nazareth, whose staff has been refining both sets of new clearing rules. ''The rules are part of a multipronged SEC approach to the clearing issue.'' The new SEC rules, which were quietly approved by the commission's staff yesterday, have support from a brokerage industry group. Tougher proposals still being developed, though, have drawn fire from clearing firms, which fear greater legal liability for possible fraudulent activity by their brokerage clients. The new rules take effect immediately, SEC associate market- regulation director Larry Bergmann said. One requires clearing firms to report any customer complaints about trading practices to the brokerage and to the New York Stock Exchange or National Association of Securities Dealers, a copy of the new rules shows. Possible Manipulation Another rule requires clearing firms to provide statistical indicators of possible stock manipulation and other unusual activity to the brokerages whose trades they process. One such indicator, which would be reviewed by the compliance divisions of the brokerages receiving these reports, is frequent trade cancellations, Bergmann said. Many cancellations could signal that a brokerage is making unauthorized trades, he said. The new standards ''represent an important step toward addressing recent concerns about questionable sales practices and potentially fraudulent activity,'' the 16-page rule document said. The commission, headed by Chairman Arthur Levitt, can delegate rule-approval authority to its staff. The market- regulation division, led by Nazareth, approved the clearing rules yesterday, Bergmann said. The rules were proposed by the NYSE and the NASD in late 1997. They generally are supported by the Securities Industry Association, the brokerage trade group, SIA associate general counsel Michael Udoff said. 3 cheers for us little guys...........