BROKER-DEALER FINRA -

Issues Guidance With Respect to Stop Orders and Volatile Market Conditions -

On May 26, FINRA issued guidance encouraging firms to review their policies with respect to the use of stop orders during volatile market conditions. The guidance encourages firms to: (1) ensure customers are provided proper disclosures (either through registered representatives or, if a customer is able to enter stop orders online, through prominent disclosures); (2) review the availability or use of stop orders in light of their customer base; and (3) consider whether certain safeguards should be employed.