(Bloomberg) -- Some brokers might be violating rules that require them to get the best prices for clients when they send stock orders to exchanges that offer rebates, regulators said in an outline of oversight priorities.
Recent exams that reviewed how brokerages decide where to send trades found that “some firms do not have active best- execution committees or other supervisory structures,” the Financial Industry Regulatory Authority said today in an letter stating its 2015 exam topics. Brokers’ failures could lead to clients getting prices inferior to the best bid or offer in the market, the industry-funded regulator said.
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