FINRA Announces Review of Higher-Risk Structured Products

• TRACE Transition to Native FIX: FINRA is transitioning from our legacy FIX Protocol platform to a new Native FIX platform for TRACE trade reporting. We anticipate retiring all TRACE legacy FIX reporting late in the fourth quarter of this year.
   
• Rule 8210 Information Request Delivery: FINRA filed a proposed rule change with the SEC to amend Rule 8210(d) to specify that FINRA will deliver electronically its requests for information and testimony to member firms through FINRA Gateway, rather than by mail. The proposed rule change will be implemented on May 26.
   
• Proposal to Improve Price Transparency in TRACE: 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. Comments are due to the SEC by May 27.
   
• Outside Activities Proposal: The SEC instituted proceedings to determine whether to approve or disapprove our amended proposal to streamline and reduce unnecessary burdens regarding existing requirements that address the outside activities of member firms' associated persons. Comments are due to the SEC by May 27, and rebuttal comments are due to the SEC by June 10.
   
• Proposal to Facilitate Capital Formation: The SEC on April 23 instituted proceedings to determine whether to approve or disapprove FINRA’s proposed rule changes to streamline aspects of the corporate financing process. Comments were due to the SEC by May 19, and rebuttal comments are due to the SEC by June 2.
   
• New Intraday Margin Standards: FINRA adopted new intraday margin standards to replace in their entirety the outdated day trading margin requirements, including the day trade count requirements for designating a customer as a “pattern day trader” and the $25,000 pattern day trader minimum equity requirement. The effective date of the amendments is June 4. Members that need more time to implement the rule change will be permitted to phase in their implementation over a period of 18 months, until Oct. 20, 2027. FINRA published Reg. Notice 26-11 announcing updated interpretations of FINRA Rule 4210 (Margin Requirements) to guide members in implementing the new intraday margin standards.
   
• Proposal to Amend Short Interest Reporting Framework: FINRA proposed amendments to our short interest reporting framework to enhance transparency and strengthen regulatory oversight of SEC Regulation SHO compliance. Comments are due to the SEC by June 8.
   
• TRACE Reporting for BD/IAs: FINRA has amended Rule 6730 to allow firms that operate as both broker-dealers and investment advisers (BD/IAs) to report allocations of aggregate orders to multiple managed customer accounts in a single TRACE report, rather than submitting separate reports for each account allocation. The optional streamlined reporting alternative takes effect June 8.
   
• Board of Governors Election: FINRA will hold a Board election on July 13 for a small firm seat and a large firm seat.
   
• New Member Application: FINRA has introduced technological enhancements to the New Member Application (Form NMA). The enhanced Form NMA is now available through FINRA Gateway. The legacy version of the form will retire on July 15. 

Disciplinary Actions

Webinar: AI Adoption in Practice: Implementation | May 27 | Virtual Event

Webinar: From Red Flags to Real Results: How Regulators and Firms Stop Elder Financial Exploitation | June 2 | Virtual Event

FINRA Crypto Applied Learning Program | June 2-4 | In-Person Event | Washington, DC

FINRA Certified Regulatory and Compliance Professional (CRCP)® Program Week I | July 12-17 | In-Person Event | Washington, DC

U.S. Department of the Treasury's Large Position Reporting Rules Workshop 2026 | June 26 | Virtual Event

Webinar: AI Adoption in Practice: Supervision | July 29 | Virtual Event

Financial Crimes and Cybersecurity Conference | Aug. 10-11 | Hybrid Event | New York, NY

Advertising Regulation Conference | Oct. 15-16 | Hybrid Event | Washington, DC

FINRA Small Firm Conference | Oct. 27-28 | In-Person Event | Chicago, IL

FINRA Certified Regulatory and Compliance Professional (CRCP)® Program Week II | Nov. 15-20 | In-Person Event | Washington, DC

Crypto and Blockchain Education Program Foundational E-Learning Courses | Self-Paced

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