Regulatory Notice 08-80

FINRA Requests Comment on Proposed FINRA Rule Addressing Best Execution; Comment Period Expired: January 29, 2009

Executive Summary

As part of the process of developing a new, consolidated rulebook (the Consolidated FINRA Rulebook), FINRA is requesting comment on proposals relating to FINRA's rule on best execution and interpositioning. There are four primary proposed amendments that are described in this Notice:

 

  1. the adoption of a new provision providing that a member firm has met its best execution obligations regarding orders for foreign securities with no U.S. market if certain conditions are met;
  2. the replacement of NASD Rule 2320(g) with Supplementary Material addressing a member firm's best execution obligations when handling orders for securities with limited quotation information;
  3. the codification of a member firm's obligation to regularly and rigorously review execution quality; and
  4. the adoption of Supplementary Material addressing a member firm's obligations when handling an order that the customer has instructed the firm to route to a particular market for execution.

 

The text of the proposed rule is set forth in Attachment A.

Questions concerning this Notice should be directed to the Office of General Counsel, at (202) 728-8071.

 

 

The comment period was extended to February 27, 2009.

View Full Notice PDF 144 KB


The views, expressions, findings and opinions expressed in the comments on this Web page are solely those of the author(s) and FINRA accepts no responsibility for the content of the comments.


Comments By Date Received
Scottrade, Inc. (PDF 34 KB) 1/29/2009
Sidley Austin LLP (PDF 116 KB) 1/29/2009
First Allied Securities, Inc. (PDF 44 KB) 2/3/2009
Cutter & Co., Inc. (PDF 13 KB) 2/18/2009
NAIBD (PDF 59 KB) 2/25/2009
SIFMA (PDF 113 KB) 2/26/2009
FSI (PDF 61 KB) 2/27/2009
Pink OTC Markets, Inc. (PDF 136 KB) 3/20/2009
Liquidnet, Inc. (PDF 325 KB) 4/27/2009