NASD Notice to Members 99-92 - November 1999

SEC, NASD Regulation, and NYSE Issue Joint Statement on Broker/Dealer Risk Management Practices

Executive Summary

The Securities and Exchange Commission, NASD Regulation, Inc. (NASD RegulationSM), and the New York Stock Exchange recently issued a joint statement regarding broker/dealer risk management practices. The examination staffs from these organizations formed a task force several years ago to assess such practices. The task force issued this statement to emphasize the importance of maintaining an appropriate risk management system. The statement also provides examples of weaknesses and strengths in various broker/dealers’ risk management policies and practices.

 

Questions regarding this Notice to Members should be directed to Samuel Luque, Jr., Associate Director, Member Regulation, NASD Regulation, at (202) 728- 8472.