SEC, Asco talk proprietary trading
The Securities and Exchange Commission (SEC) discussed solutions to control proprietary trading with the Association of Securities Companies (Asco) following criticism that brokers could take advantage of retail investors.
Another concern was brokers' trading potentially leading to high volatility in the stock market. Whether the current limit of proprietary trading at 75% of shareholders' equity remains appropriate was a key topic, said Duangmon Chuengsatiansup, the SEC's assistant secretary-general. If stock trading turnover per day for brokers' proprietary
trading should be limited was also raised in the discussion, she said.
Asco representatives will discuss these issues later with their members to specify proper rules, said Ms Duangmon.