FINRA Forward Report Highlights Year of Progress

Features

• FINRA Forward Report Highlights Year of Progress
  One year in, FINRA is delivering on FINRA Forward. Our new report outlines our progress, highlights some of the concrete actions we have taken since launching FINRA Forward in the spring of 2025, and looks ahead as we enter the initiative’s second year. FINRA Forward is part of our ongoing commitment to continuous improvement across all of our programs. As we build on the work we completed over the past year, we will continue to actively seek input from member firms, the investing public, and other stakeholders. We invite you to read the FINRA Forward: A Year of Progress report here and visit these pages on FINRA.org to stay updated on the latest initiatives.
   
• Registration Still Open to Attend FINRA Annual Conference Virtually
  The 2026 FINRA Annual Conference, on May 12-14, has reached capacity, but virtual participation is still available. As part of our commitment to transparency and engagement with member firms, we are also offering complementary, livestreamed access to three of the sessions. Visit the conference page to register to attend the event virtually or gain access to the livestreamed sessions. The agenda is available here.
   
• Enhancements to Short Interest Reporting Proposed
  FINRA proposed amendments to our short-interest reporting framework to enhance transparency and strengthen regulatory oversight of SEC Regulation SHO compliance. The proposal involves two key components: amendments to FINRA Rule 4560 (Short-Interest Reporting) and adoption of new FINRA Rule 4321 (Allocations of Fail to Deliver Positions). The proposed amendments to Rule 4560 would increase both the frequency and granularity of short-interest data collected and disseminated by FINRA, making the information more useful for market participants and regulators. In addition, new Rule 4321 would require members to report to FINRA on a monthly basis their daily allocations of SEC Regulation SHO Rule 204 fail to deliver positions to correspondent firms. Comments will be due to the SEC 21 days after the proposal’s publication in the Federal Register.
   
• FINRA Addresses Comments on Outside Activities Proposal
  On May 1, FINRA submitted a response to comments on our proposal to streamline and reduce unnecessary burdens regarding existing requirements that address the outside activities of member firms’ associated persons, and we contemporaneously filed a partial amendment to the proposal. Also on May 1, the SEC instituted proceedings to determine whether to approve or disapprove the proposal, as modified by the partial amendment. Comments are due to the SEC by May 27, and rebuttal comments are due to the SEC by June 10. 
   
• Fees to Cover CAT Costs Proposed
  FINRA filed a proposed rule change effective April 28 to establish industry member fees for funding reasonably budgeted costs of the Consolidated Audit Trail (CAT) over the next eight months. The proposed fee rate is set at $0.000001 per executed equivalent share and covers the period from May 1 through December 31.
  
  In addition, FINRA filed a separate proposed rule change, also effective April 28, to establish a fee assessment called “Historical CAT Assessment 1A” to recover certain unpaid historical costs associated with the CAT. These costs were incurred prior to January 1, 2022, but were not fully collected through the previous Historical CAT Assessment 1. The proposed fee rate is set at $0.000002 per executed equivalent share.
  
  These filings were submitted pursuant to CAT LLC’s decision to establish such CAT fees, to be implemented by FINRA and other CAT Plan Participants. For both fees, billing will begin in June, with the first invoice calculated based on May transactions.
   
• FINRA Modernizes Filing Form for Public Offerings
  As part of FINRA Forward, we will launch a modernized filing form to reduce member firm compliance costs and streamline submissions. Developed in response to industry feedback, the new form pre-populates data from publicly available SEC filings, validates submission completeness, and delivers a simplified filing experience. Member firms will begin using the form in the Public Offering System for new filings on May 9.
   
• New FAQ Clarifies How to Report Trades Against Non-Fiat Currency Assets
  FINRA published a new FAQ to address how members should report the price of a trade for a security against an asset that is not a fiat currency. It clarifies that all trades must be reported to FINRA in U.S. dollars, including in situations where a non-security crypto asset is exchanged for a security. The FAQ, entitled Q101.14, is available here.
   
• FINRA Issues Advisory on Corporate Action Announcements
  FINRA issued a Uniform Practice Code advisory on May 5 reminding member firms to consult the FINRA Daily List, rather than third parties, for corporate action announcements regarding over-the-counter equity securities. There have been recent instances of market confusion resulting from the use of an ex-date for an over-the-counter equity security corporate action other than the one announced by FINRA on the Daily List. The advisory is available here, and the Daily List is here.
   
• Coming Soon: New Rule 605 Designated Participant Authorization Form
  In mid-June, FINRA will introduce an updated Rule 605 Designated Participant Authorization Form reflecting changes in connection with the amendments to SEC Rule 605 that will take effect on Aug. 1. As part of FINRA Forward’s ongoing efforts to modernize our technology platforms and streamline regulatory processes, the updated form will be accessible through the FINRA Gateway, replacing the current PDF form that firms email to FINRA. All firms required to produce Rule 605 reports that wish to designate FINRA as their Designated Participant under the Rule 605 NMS Plan must complete this new form. Stay tuned for further updates and announcements.
   
• ICYMI: SEC Requests Comment on Proposal to Facilitate Capital Formation
  The SEC instituted proceedings on April 23 to determine whether to approve or disapprove FINRA’s proposed rule changes to streamline aspects of the corporate financing process. The proposed amendments would clarify parts of Rule 5110 regulating underwriting compensation, including the valuation method for and exceptions from securities acquisitions that are considered underwriting compensation. They would also expand the exemptions available in Rule 5123 to include offerings sold to accredited investors for certain family offices and certain entities with assets under management in excess of $5 million, consistent with the SEC's treatment of those categories. Comments are due to the SEC by May 19, and rebuttal comments are due to the SEC by June 2.
   
• ICYMI: Amendments to Improve Price Transparency in TRACE Proposed
  FINRA filed a proposed rule change with the SEC on April 22 that would expand the existing non-member affiliate—principal transaction indicator in TRACE to also suppress certain member-to-member affiliate transactions from public dissemination. By preventing the dissemination of additional back-to-back inter-affiliate trades meeting certain criteria that provide no new pricing information, the proposal would improve transparency in TRACE-eligible securities. Comments are due to the SEC by May 27.
   
• ICYMI: PCAOB Seeks Input on Strategic Priorities
  The Public Company Accounting Oversight Board (PCAOB) opened a public comment period on March 31 to gather input on its strategic priorities. Member firms may wish to consider submitting a comment letter. The comment period ends May 15. See the PCAOB’s request for comment for further details.
   
• ICYMI: Scheduled Maintenance for SIPC Broker-Dealer Portal
  FINRA is notifying firms of the following information from the Securities Investor Protection Corporation (SIPC). Due to planned maintenance, the SIPC Broker-Dealer Portal will be unavailable from 6 p.m. Eastern Time (ET) on Friday, May 8, until 11:59 p.m. ET on Sunday, May 10. During this time, portal users will not be able to log in, file or amend assessment forms, make payments through the portal, or send and receive portal messages. Questions should be directed to the SIPC Membership Department. 

• FINRA publishes disciplinary actions to remind members of specific conduct that violates FINRA rules and may result in disciplinary action. The April 2026 Monthly Disciplinary Actions are available here.