The U.S. Securities and Exchange Commission unanimously voted Wednesday to bar traders from having unfiltered access to trading markets.

The move, meant to prevent mistaken or malicious trades from disrupting the stock markets, is part of a series of changes the Commission has made after the "flash crash" of May 6, when the Dow plunged more than 600 points in mere minutes, then recovered most of that within 20 minutes.

The new rule will prevent brokers from giving customers special access codes that allow for end-user trading without any risk controls in place, the SEC said Wednesday. Granting so-called "naked access" is like "giving your car keys to a friend who doesn't have a license and letting him drive unaccompanied," SEC Chairman Mary Shapiro said in a statement. With today's vote, traders would be forced to run orders through their brokers' risk controls instead of automatically putting them through.

Broker-dealers will have six months to comply with the rule once it takes effect, the SEC says.

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November 04 2010 at 12:19 PM Report abuse rate up rate down Reply
ranes54

6 months to comply? What's up with that? In 6 months a naked trader can have a field day!

November 04 2010 at 12:01 AM Report abuse rate up rate down Reply
David

Daily Finance, with timely information like this, is one of AOL's best-run sites.

November 03 2010 at 10:11 PM Report abuse +1 rate up rate down Reply
MSmailbox

I found "naked access" to be extraordinarily expensive and embarrassing. I for one, welcome the filters and controls that our markets now have. Of course there's still risk, but not the unbridled form of "halatious-risk," which makes your socks roll up and down, by themselves.

November 03 2010 at 9:59 PM Report abuse rate up rate down Reply
marine1942

Fox is in the hen house

November 03 2010 at 9:17 PM Report abuse +1 rate up rate down Reply
schreck2

If this is so good an idea, why wait 6 months? How about Monday, or even tomorrow?

November 03 2010 at 8:08 PM Report abuse -1 rate up rate down Reply
1 reply to schreck2's comment
MSmailbox

There are still a number of trades which need to be processed, ahead of any attempt to restrain our trading pattern. Once the money is back in the right hands, we intend to enforce these measures, Vigorously, with a capital V!

November 03 2010 at 10:02 PM Report abuse rate up rate down Reply