As wall street continues to rebuild from the ashes of the credit crisis and reassess its risk controls, broker-spon-sored access to exchanges is the latest practice to come under scrutiny. With sponsored access, executing broker-dealers offer their market participant identifiers - or MPIDs - to theirrnclients to access exchanges or ECNs directly, without going through the brokers' trading systems. Industry participants have raised concerns that by giving high-frequency trading firms unfiltered access to market centers without monitoring these orders pre-trade, brokers may be putting the financial system at serious risk. And the issue has gotten the attention of regulators.
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