FINRA urged members to be wary of recommending or entering unpriced customer orders on the first day of trading of a new listing.
In Regulatory Notice 18-11, FINRA warned that without an established trading history for a security, the opening price of a new listing and the prices of trading on the secondary market for that security may vary significantly. FINRA stated that on the first day of trading, investors who place unpriced market orders may find their orders filled at a different price than they reasonably expected. FINRA advised members, when either recommending or entering orders on the first day of trading, to consider limit orders, which put a floor or ceiling on the trade price.
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