FINRA proposed amendments to requirements under FINRA Rule 6432 ("Compliance with the Information Requirements of SEA Rule 15c2-11"). The proposed amendments conform the rule to SEC amendments to SEA Rule 15c2-11 ("Initiation or Resumption of Quotations without Specific Information"). The SEC amendments permit broker-dealers to use publicly available determinations of information reviews made by a "qualified interdealer quotation system" ("Qualified IDQS").

FINRA stated that the amendments to SEA Rule 15c2-11 made "substantial changes to the prior framework" that necessitate changes to FINRA Rule 6432, which requires that a member file Form 211 if the member quotes a non-exchange-listed security in a quotation medium.

Specifically, the FINRA amendments would:

  • require that a Qualified IDQS submit a modified Form 211 for each initial information review;
  • require that a Qualified IDQS that makes a publicly available determination submit a daily security file for all non-exchange-listed equity securities quoted on its system; and
  • clarify the operation of FINRA Rule 6432 and conform the rule to amended Rule 15c2-11.

The proposed effective date of the amendments would be the same as the compliance date of the SEC's amendments to SEA Rule 15c2-11. Comments must be received within 21 days of the proposal's publication in the Federal Register.

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