Regulatory Notice 15-52
SEC Staff Provides Insight Into Firms’ Obligations When Providing Stock Quote Information to Customers
FINRA is issuing this Notice to remind firms and registered representatives of their obligations under Rule 603(c) of Regulation NMS (Vendor Display Rule) when providing quotation information to customers. The SEC staff recently made clear its view that if a registered representative provides a quotation to a customer that can be used to assess the current market or the quality of trade execution, reliance on non-consolidated market information as the source of that quotation would not be consistent with the Vendor Display Rule. In light of the SEC staff’s statements, firms should review whether they are in compliance with the requirement in the Vendor Display Rule that broker-dealers provide a consolidated display of market data when they are providing quotation information to customers.
Questions concerning this Notice should be directed to:
- Brant K. Brown, Associate General Counsel, Office of General Counsel, at (202) 728-6927; or
- Christine Sakach, Special Counsel, Market Regulation, at (240) 386-5404.