The Securities and Exchange Commission Wednesday unanimously voted to ban 'naked access' to stock markets by unregistered entities.

By 5-0 vote, the federal regulator ordered brokers to apply risk controls to any orders initiated by customers who are borrowing a broker's market participation identification code. The controls on financial exposure and on compliance with regulations must be executed before sending in each order.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.