In response to the increasing pressure brokers are receiving from FINRA and other regulatory bodies regarding market manipulation, specifically in the area of wash trades, Sterling Trader has completed modifications to our wash trade control.  The new control we have implemented features the following rules designed to combat wash trades while giving traders the flexibility they need to trade their strategies efficiently.  We believe these enhanced rules will have a significant impact on wash trade risk within the Sterling Trader platforms which, in turn, will help manage the risk to clients.

1. If a trader has an open Buy order,  Sterling will reject any Sell or Sell Short limit orders at or below the open Buy order’s price.  Sterling will also reject any Sell or Sell Short market orders.
2. If a trader has an open Sell or Sell Short order, Sterling will reject any Buy limit orders at or above the open Sell order’s price.  Sterling will also reject any Buy market orders.
3. All order types/price types (LMT, MKT, STP, S-STP, T-STP, CLO, OPG, etc) are included in this functionality.

Please note that the controls have been implemented per symbol at the Sterling account level.  This means the control will not prevent one Sterling account from trading with another Sterling account.

Please contact the Sterling Help Desk if you would like the new Wash Sale controls implemented for your accounts.  And please contact us with any other questions.  Contact information is listed below.

(312) 346-9600 x290
support@sterlingtrader.com