- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Jeff Dale2024-11-06T21:36:00
The Financial Industry Regulatory Authority (FINRA) fined broker-dealer Morgan Stanley $1 million over alleged documentation failures related to risk management controls and supervisory procedures involving violations of the Market Access Rule.
Morgan Stanley had unclear order controls in regard to the grouping of customer transactions into low- or high-touch thresholds, with the potential for the entry of erroneous orders to enter the market, FINRA alleged in a disciplinary action Friday.
Low-touch orders are processed through an automated system, while high-touch orders are a more manual process, the self-regulatory agency noted. The firm allegedly “permitted orders that had been manually reviewed and released and subsequently amended at a later time … without additional manual review.”
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