FINRA Proposes Keeping 15-Minute TRACE Reporting Timeframe

FINRA Proposes Keeping 15-Minute TRACE Reporting Timeframe 
FINRA filed on Tuesday a proposal to maintain the current requirement that members report transactions to TRACE as soon as practicable, but no later than within 15 minutes. FINRA had previously received SEC approval to reduce the outer limit timeframe to no later than one minute for fully electronic transactions and five minutes for manual trades (after a three-year phase-in period), with an exception for firms with limited trading activity. FINRA determined to maintain the current standard following continued engagement with members, who cited a number of concerns with the faster timelines, including reporting fully electronic transactions with more complex workflows and challenges to faster reporting for trades executed by telephone, email or through a chat/messaging function. Tuesday’s proposal comes after FINRA President and CEO Robert Cook published a blog earlier this year explaining FINRA’s decision to pause the implementation of the faster reporting requirements in order to consider questions and concerns raised by members. The SEC will publish the proposal for public comment in the Federal Register. 
 

FINRA Proposes Modifying Implementation Date of Securities Offering Review Fee Changes 
FINRA filed a proposal on June 5 to modify the implementation schedule for the new Corporate Financing Private Placement Review Fee and the Corporate Financing Public Offering Review Fee increases that were previously adopted in a 2024 fee filing and scheduled to be implemented on July 1, 2025. Under the proposed changes, the new Corporate Financing Private Placement Review Fee and the Corporate Financing Public Offering Review Fee increases would be implemented on January 1, 2027, at the previously adopted rates for that year. During the 18-month period from July 1, 2025 through December 31, 2026, FINRA would continue our review of private placements at no charge and of public offerings at the current rate without increase. 
 

FINRA Files Amendments Relating to Immediately Effective FINRA Sanctions and Actions 
FINRA proposed on June 4 amending our rules relating to certain sanctions and regulatory measures that may take effect immediately. The proposed amendments would provide FINRA staff and adjudicators authority to grant respondents and applicants, where appropriate, the opportunity to seek a stay from the SEC or take other appropriate action when faced with an immediately effective sanction or other regulatory measure. FINRA has proposed that these rule changes take effect immediately, and they will be implemented on July 4. 
 

FINRA Proposes Amending its Capital Acquisition Broker Rules 
As part of our ongoing efforts to support efficient capital formation, FINRA filed a proposal on June 4 with the SEC to amend our Capital Acquisition Broker (CAB) rules. Among other changes, the proposal would expand the definition of institutional investor to include eligible employees; allow CABs, under specified circumstances, to act as intermediaries in connection with secondary transactions of unregistered securities; and permit associated persons of CABs to participate in private securities transactions, subject to FINRA Rule 3280. FINRA believes these changes, if approved by the SEC, may encourage more firms to elect CAB status, thereby benefitting these firms and investors alike. The SEC will publish the proposal for public comment in the Federal Register. 
 

Know the Risks of Using Home Equity Loans for Investing  
A new Investor Insight describes the risks of using borrowed mortgage money for investing, including the potential to lose your home or become victimized by scammers. Firms are welcome to share it and other Investor Insights with customers.