Nine months after regulators fined the Chicago Board Options Exchange for failing to police its members, the biggest U.S. options market approved a rule aimed at preventing fraud.
Firms trading at the unit of CBOE Holdings Inc. will be required to write down how they supervise their businesses, according to a Securities and Exchange Commission order approving the Chicago-based options exchange’s proposed rule change. They must also carry out regular office inspections and send CBOE an annual report on regulatory practices. The SEC approved the rule change March 4.
Stiffening oversight will help firms trading at the CBOE “prevent fraudulent ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.