FINRA Amends Stop and Stop Limit Order Rules

The Securities and Exchange Commission approved new Financial Industry Regulatory Authority Rule 5350, which replaces the stop order provisions in FINRA Rule 6140(h). Under new FINRA Rule 5350, firms may accept stop orders and stop limit orders. Additionally, the new rule allows firms to offer alternative orders with different types of triggers, such as a quotation at the stop price, but the order type must be labeled in a way that is clearly distinguishable from a stop order or a stop limit order. The new rule applies to National Market System securities and over-the-counter equity securities.

More information is available here.