Award Survey: 2001-18 Clearing Broker-Dealer Liability
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Broker-dealers who engage with customers as “introducing broker-dealers” don’t perform the “back office” tasks needed to clear and settle transactions. Rather, they rely on specialized clearing broker-dealers to perform those functions for the introducing BDs,

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Executing Investment Adviser’s Trades Without Informing Customer Triggers Broker-Dealer’s Suitability Duty to Customer: Milliner v. Mutual Securities, Inc.
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By Paul J. Dubow

Registered representatives who effect transactions on a customer’s behalf without informing the customer have implicitly recommended those transactions,

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Clearing Firm May Be Liable for Its Role in Manipulative Trades, Court Concludes: Overstock.com, Inc. vs. Goldman Sachs & Co.
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Section 25400 of California’s securities laws prohibits the “effecting” of manipulative trades (and Sec. 25500 supplies the remedy); the term “effect” extends liability beyond those who buy and sell to those involved in any aspect of executing,

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