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.
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