Blog
Consolidated Audit Trail (CAT) Approved
The Securities and Exchange Commission (SEC) has approved a National Market System (NMS) plan to create a comprehensive database of all trading activity in the U.S. equity and options markets. This database is known as the Consolidated Audit Trail (CAT). Proposed by FINRA and the national security exchanges to comply [...]
Quotation System for OTC Equity Securities
FINRA is soliciting comment on a proposal to provide for a FINRA-sponsored inter-dealer quotation facility for all OTC equity securities. Over the past several years, there have been instances in which market-wide trading halts for all OTC equity securities have been put into effect by FINRA out of concern regarding [...]
Communications with the Public – Part II
[Continued from Communications with the Public – Part I] Investment Analysis Tools Pursuant to FINRA Rules 2210(c)(3)(C) and 2214(a), firms that intend to offer an investment analysis tool must file templates for written reports produced by, or retail communications concerning, the tool, within 10 business days of first use. Rule [...]
Communications with the Public – Part I
In April 2014, FINRA began a review of its communications with the public rules to assess their effectiveness and efficiency. FINRA later published a report concluding that, while the rules have met their intended investor protection objectives, they could benefit from some updating to better align the investor protection benefits [...]
Automatic Lock-In to ADF Disabled
Firms that use the Alternative Display Facility (ADF) to report over-the-counter trades in NMS stocks for broker-dealer compliance management purposes can choose to have their trades submitted by the ADF to the National Securities Clearing Corporation (NSCC) for clearance and settlement. Designated trades can be locked-in via agreement by both [...]
Financial Exploitation of Specified Adults
FINRA recently filed proposed new regulations regarding broker-dealer compliance with the SEC to: (1) amend FINRA Rule 4512 (Customer Account Information) to require member firms to make reasonable efforts to obtain the name of and contact information for a trusted contact person for a customer’s account; and (2) adopt new [...]