MARKETS: Relatives Watched

SEC has long been anxious to stop partners in brokerage firms from margin speculating. Last week the New York Stock Exchange issued a new regulation to satisfy SEC. It forbade general partners of member firms from trading on margin through their own or other member firms. (Like other investors, they can, of course, trade on borrowed money if they obtain it elsewhere.) Exempt from this rule were specialists and certain technical transactions. The Exchange warned partners that the brokerage accounts of their close relatives would be scanned to see that the spirit of the new rule was observed.


Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!