FINRA Proposes to Amend Rule 11892

more+
less-

On May 6, the Securities and Exchange Commission published a notice of filing of a proposed change to Financial Industry Regulatory Authority, Inc. Rule 11892 regarding clearly erroneous transactions in exchange-listed securities. The amendments grant FINRA the authority to declare null and void (i) transactions based on “fundamentally incorrect or grossly misinterpreted issuance information” and (ii) transactions that occur after a disruption or malfunction of the electronic communication or trading facilities or during a regulatory halt (i.e., a trading halt). The amendments allow FINRA to view a multiday series of trades as a single event if such transactions were based on fundamentally incorrect or grossly misinterpreted issuance information. FINRA’s authority to declare such transactions null and void excludes transactions that have reached the settlement date or that are part of an initial public offering. The amendments also provide that each member firm involved in a transaction declared null and void or subject to a trading halt will be notified as soon as practicable. 

The proposed rule change is available here.

 

Written by:

Published In:

SEC

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Katten Muchin Rosenman LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×