Finra Trading-Surveillance System Will Be Curbed, Ketchum Says

The Financial Industry Regulatory Authority, Wall Street’s self-regulator, is moving to curb a trading-surveillance system that has generated opposition from brokers, Chief Executive Officer Rick Ketchum said today. Smaller brokers that don’t use clearing firms will have more flexibility to send trade and commission data directly or to use a service bureau, Ketchum said at Finra’s annual conference in Washington. Trade information about products not held by brokers, such as variable annuities and direct mutual funds, won’t have to be submitted in the early stages of the project, he said. Finra told brokers in December it was working on the system, known as Cards, to help it spot suspicious activity including overcharges and selling unsuitable investments. More on Bloomberg BusinessWeek here.