SEC Proposes Banning ‘Naked Access’

The SEC proposed to ban a trading arrangement known as “naked access,” in a move that could set back the fast-growing high-frequency trading industry.

Naked access allows high-speed traders and others to rapidly buy and sell stocks directly on exchanges using a broker’s computer code without exchanges or regulators always knowing who is making the trades. The practice is akin to members of an exclusive club charging others to use their pass.

Full story at  WSJ.com.