Regulatory Notice 12-52

SEC Approves Consolidated Front Running Rule

 

Effective Date: June 1, 2013

Executive Summary

Effective June 1, 2013, FINRA Rule 5270 addressing the front running of block transactions will replace NASD IM-2110-3 in the Consolidated FINRA Rulebook. Among other changes, Rule 5270 applies to a broader range of securities than IM-2110-3, includes new Supplementary Material regarding permitted transactions, and codifies that front running of a customer order may violate other FINRA rules or the federal securities laws.

 

The text of the new rule is available in the online FINRA Manual.

 

Questions concerning this Notice should be directed to Brant K. Brown, Associate General Counsel, Office of General Counsel at (202) 728-6927.

 

Update: 5/3/13: The effective date for compliance with FINRA Rule 5270 has been extended to September 3, 2013. Original Effective Date: June 1, 2013