FINRA requested comments on the application of certain rules to government securities, including U.S. Treasury securities, and other exempted securities. In Regulatory Notice 18-05, FINRA noted that numerous FINRA and NASD rules do not apply to such securities. (FINRA rules that apply to government securities are listed in FINRA Rule 0150.) FINRA is seeking input on the validity and implications of these exclusions. The rules were identified as part of a comprehensive review requested by the SEC Division of Trading and Markets.
FINRA is soliciting comments on the following rules:
- FINRA Rule 2242 ("Debt Research Analysts and Debt Research Reports");
- FINRA Rule 5280 ("Trading Ahead of Research Reports");
- FINRA Rule 5240 ("Anti-Intimidation/Coordination");
- FINRA Rule 5250 ("Payments for Market Making");
- FINRA Rule 5270 ("Front Running of Block Transactions");
- FINRA Rule 5320 ("Prohibition Against Trading Ahead of Customer Orders");
- NASD Rule 1032(f) ("Securities Trader");
- NASD Rule 1032(i) ("Limited Representative – Investment Banking"); and
- NASD Rule 1050 ("Registration of Research Analysts").
FINRA provided background information and questions for consideration concerning each of the rules listed above.
FINRA encouraged commenters to include empirical data or other factual support for their comments. Comments must be submitted by April 9, 2018.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
