Disclosures matter in SEC review of online trading apps (Bloomberg Law)

While the SEC continues to receive a variety of public comments for its review of online trading platforms, it is taking a hard look at what disclosures investors have been provided. The regulator wants to determine whether investors engaging in online trading are aware of any conflicts of interest at these firms. as well as what is being disclosed to them about game-like features, predictive analytics, and other tools that could influence their decisions. However, Amy Lynch, FrontLine’s Founder and President, points out that disclosures must be read to be useful and while the SEC may require more disclosures, ultimately the customer must recognize the importance of reading it to understand its significance. See Bloomberg Law, “SEC ‘Gamification’ Study Ups Reporting Threat for Online Brokers”