FINRA Board of Governors

Rulemaking Items for Discussion at the April 2013 Meeting
The FINRA Board of Governors will consider the following rulemaking items at its April 2013 meeting. After the April 18 meeting, FINRA will notify firms via email about the Board's actions on these items and anticipated next steps, if any.

 

ADF Market Participant Requirements
The Board will consider proposed amendments to the Rule 6270 Series (Quoting and Trading in ADF-Eligible Securities) relating to the requirements that a member firm must meet to register as an Alternative Displace Facility (ADF) market participant.

 

Arbitration Panel Composition
The Board will consider proposed amendments to FINRA Rule 12403 (Cases with Three Arbitrators) to simplify the arbitration panel selection rules. Rather than requiring the customer to elect a panel-selection method, parties in all customer cases with three arbitrators would get the same selection method. All parties would see lists of 10 chair-qualified public arbitrators, 10 public arbitrators and 10 non-public arbitrators. The proposed rules permit four strikes on each of the public arbitrator lists. However, any party could select an all-public arbitration panel by striking all of the arbitrators on the non-public list.

 

Discovery Guide Used in Investor Arbitration Proceedings
The Board will consider proposed amendments to the Discovery Guide used in customer arbitration proceedings to provide general guidance on e-discovery issues and product cases. The guidance, which would appear in the introduction to the Discovery Guide, would emphasize flexibility in the discovery process. FINRA is not proposing to amend the Document Production Lists, which specify documents that are presumptively discoverable in customer cases. The proposed amendments would also clarify existing provisions in the introduction relating to affirmations.

 

Customer Account Statements
The Board will consider proposed amendments to NASD Rule 2340 (Customer Account Statements) and FINRA Rule 2310 (Direct Participation Programs) to modify the requirements relating to the per share estimated values for unlisted DPP and REIT securities included on customer account statements.

 

Dissemination of TRACE-Eligible Rule 144A Transactions
The Board will consider proposed amendments to FINRA Rules 6750 (Dissemination of Transaction Information) and 7730 (Trade Reporting Compliance Engine (TRACE)) to provide for the dissemination of transactions in TRACE-eligible securities effected pursuant to Securities Act Rule 144A (Rule 144A transactions). In addition, Rule 144A transactions aged at least 18 months would become available in a new Historic Rule 144A Data Set.