Regulatory Notice 08-80
FINRA Requests Comment on Proposed FINRA Rule Addressing Best Execution
As part of the process of developing a new, consolidated rulebook (the Consolidated FINRA Rulebook), FINRA is requesting comment on proposals relating to FINRA's rule on best execution and interpositioning. There are four primary proposed amendments that are described in this Notice:
- the adoption of a new provision providing that a member firm has met its best execution obligations regarding orders for foreign securities with no U.S. market if certain conditions are met;
- the replacement of NASD Rule 2320(g) with Supplementary Material addressing a member firm's best execution obligations when handling orders for securities with limited quotation information;
- the codification of a member firm's obligation to regularly and rigorously review execution quality; and
- the adoption of Supplementary Material addressing a member firm's obligations when handling an order that the customer has instructed the firm to route to a particular market for execution.
The text of the proposed rule is set forth in Attachment A.
Questions concerning this Notice should be directed to the Office of General Counsel, at (202) 728-8071.
The comment period was extended to February 27, 2009.
|Date||Commenter||Format - Size|
|1/29/2009||Sidley Austin LLP||PDF - 115.69 KB|
|1/29/2009||Scottrade, Inc.||PDF - 33.36 KB|
|2/3/2009||First Allied Securities, Inc.||PDF - 43.82 KB|
|2/18/2009||Cutter & Co., Inc.||PDF - 12.51 KB|
|2/25/2009||NAIBD||PDF - 58.88 KB|
|2/26/2009||SIFMA||PDF - 112.53 KB|
|2/27/2009||FSI||PDF - 60.98 KB|
|4/27/2009||Liquidnet, Inc.||PDF - 324.34 KB|
|3/20/2009||Pink OTC Markets, Inc.||PDF - 135.32 KB|