Regulatory Notice 12-24

FINRA Reminds Firms of Rule 5131(d)(4)'s Prohibition on Accepting Market Orders for the Purchase of New Issues Prior to the Commencement of Trading on the Secondary Market

Executive Summary

This Notice reminds firms that FINRA Rule 5131(d)(4) prohibits firms from accepting a market order for the purchase of shares in a new issue in the secondary market prior to the commencement of trading of such shares in the secondary market.

 

The text of the rule can be found in the online FINRA Manual.

 

Questions regarding this Notice may be directed to Racquel Russell, Assistant General Counsel, Office of General Counsel, at (202) 728-8363.