Stock Manipulators Beware: SEC Cracking Down

Film buffs may remember the "Stock Watch" outfit in the Oliver Stone movie "Wall Street." The watchdog agency's tripwire picks up Bud Fox's manipulation of the stock of the airline Bluestar so Fox can stick it to Gorden Gekko and save his father's job. Soon, Bud is doing the perp walk in handcuffs but he later wears a wire and takes Gekko down.

Executives and traders had better watch out. It appears that stock manipulators like Bud Fox are going to have an even tougher time of it, if the U.S. Securities & Exchange Commission has its way.

The SEC is seeking public comment for a more advanced trip wire system that will centralize electronic surveillance of stock trades among self-regulators. The plan will upgrade investigations under NYSE Regulation Inc. and the Financial Industry Regulatory Authority, Inc. (FINRA).
Parties to the upgrade agreement include a host of stock exhcnages, including bourses in New York, Boston, Chicago, NASDAQ and others. Under the agreement, NYSE will keep an eye on the New York Stock Exchange and NYSE Arca while FINRA will watch over the American Stock Exchange, NASDAQ and the Chicago exchanges. Besides surveillance, NYSE Regulation and FINRA will handle investigations and enforcement, along with the SEC.