FOR IMMEDIATE RELEASE                        2001-18


      SEC Staff Report Summarizes Findings From Recent
   Examinations of Broker-Dealers Offering Online Trading

     Washington, DC, January 25, 2001 - The staff of the
Commission's Office of Compliance Inspections and
Examinations today issued a report entitled "Examinations of
Broker-Dealers Offering Online Trading:  Summary of Findings
and Recommendations."  Text of the report is available on
the Commission's website at
http://www.sec.gov/news/studies/online.htm.

     The staff undertook the review of broker-dealers
offering online trading in light of the phenomenal increase
in online trading in recent years.  The report describes the
general findings and observations from the examinations in
areas such as disclosure and investor education,
advertising, best execution, operational capability,
security measures, and employee supervision.  The
examinations revealed examples of sound practices as well as
areas where some broker-dealers can enhance their practices.
The staff is making the report public in order to highlight
issues in this area and to assist broker-dealers in
evaluating their own online trading programs.

     In releasing the report, Lori Richards, Director of the
Office of Compliance Inspections and Examinations, said, "As
more investors trade online, it becomes ever more important
for broker-dealers to ensure that their online systems are
meeting the needs and expectations of investors.  In
highlighting issues we have seen in our examinations, I hope
that this report will be helpful to all firms offering
online trading."



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