FINRA Announces SEC Approval and Effective Date for New Consolidated FINRA Rules Effective Date: December 15, 2008
SEC Approves New Consolidated FINRA Rules
| Regulatory Notice | |
| Notice Type Rule Approvals Consolidated Rulebook |
Referenced Rules & Notices Information Notice 03/12/08 Information Notice 10/06/08 FINRA Rule 0100 Series FINRA Rule 2010 FINRA Rule 2020 FINRA Rule 2070 FINRA Rule 3130 FINRA Rule 3220 FINRA Rule 4560 FINRA Rule 5110 FINRA Rule 5130 FINRA Rule 5150 FINRARule 5190 FINRA Rule 6000 through 7000 Series FINRA Rule 6121 FINRA Rule 6470 FINRA Rule 8000 Series FINRA Rule 9000 Series FINRA Rule 10000, 12000, 13000 and 14000 Series NASD IM-1013-1 |
| Suggested Routing Compliance Legal Senior Management |
Key Topic(s) FINRA Manual Rulebook Consolidation Effective Dates of Consolidated Rules |
Executive Summary
Following the consolidation of NASD and NYSE Regulation into FINRA, FINRA established a process to develop a new consolidated rulebook (Consolidated FINRA Rulebook), which FINRA has discussed in previous Information Notices.1 In recent months, FINRA began proposing new consolidated rules in phases for approval by the SEC as part of the Consolidated FINRA Rulebook.2 The first phase of new consolidated FINRA Rules, approved by the SEC in August and September 2008, will take effect on December 15, 2008.
Questions regarding this Notice should be directed to Adam H. Arkel, Assistant General Counsel, Office of General Counsel (OGC), at (202) 728-6961; or Matthew E. Vitek, Counsel, OGC, at (202) 728-8156.
Discussion
In August and September 2008, the SEC approved the following FINRA Rules and/or Rules Series for adoption as part of the Consolidated FINRA Rulebook:3
The Attachment to this Notice sets forth a detailed list of the new consolidated rules recently approved by the SEC. In the Attachment, the new rules are grouped by the rule filing that FINRA submitted to the SEC in connection with the rule change. The hyperlink to each rule filing is included. The filings provide, among other things, FINRA's statement of the purpose of the rule changes and, where applicable, exhibits showing the changes between the new rule text and the text of the NASD and/or Incorporated NYSE Rules as they exist in the Transitional Rulebook. Also, the text of the new FINRA Rules is available in the online FINRA Manual at www.finra.org/finramanual.5
The Attachment to this Notice further summarizes two additional rule filings relating to the Consolidated FINRA Rulebook approved by the SEC in September 2008. The first addresses the applicability of the new consolidated FINRA Rules to member firms of the NYSE that become members of FINRA pursuant to the membership waive-in process set forth in NASD IM-1013-1 (Membership Waive-In Process for Certain New York Stock Exchange Member Organizations) (such firms are referred to as Waive-In Firms).6 The second addresses FINRA's repeal of NASD Rule 1130 (Reliance on Current Membership List) and Incorporated NYSE Rules 405A (Non-Managed Fee-Based Account Programs—Disclosure and Monitoring), 440F (Public Short Sale Transactions Effected on the Exchange), 440G (Transactions in Stocks and Warrants for the Accounts of Members, Allied Members and Member Organizations) and 477 (Retention of Jurisdiction—Failure to Cooperate) as part of the process of developing the Consolidated FINRA Rulebook.7 The effective date of the rule changes set forth in these two filings is December 15, 2008.
Rule Conversion Chart
As an additional resource for member firms and the public, FINRA has created a Rule Conversion Chart on FINRA's Web site designed to help enhance familiarity with the new rules and show how the new rules relate to the NASD and/or Incorporated NYSE Rules in the Transitional Rulebook that they will replace.
The chart shows how rules from the Transitional Rulebook were either incorporated into the Consolidated FINRA Rulebook (by providing the corresponding new FINRA rule number and related rule filing number), or shows that the substance of the relevant rules from the Transitional Rulebook was not incorporated into the Consolidated FINRA Rulebook. Member firms should be aware that the chart is intended as a reference aid only. Throughout the rulebook consolidation process, member firms should further note that as rules are incorporated into the Consolidated FINRA Rulebook, there frequently will be revisions to existing rule language and changes to the rules' subject matter coverage. Accordingly, the language of the new consolidated rules often will not exactly match the language and coverage of the rules as they exist in the Transitional Rulebook. In some instances, the rules as they exist in the Transitional Rulebook will have been completely rewritten for purposes of the consolidation. Accordingly, FINRA reminds member firms that the chart does not in any way serve as a substitute for diligent review of the relevant new rule language. The Rule Conversion Chart is located at www.finra.org/ruleconversionchart.
1See Information Notice 10/06/08 (Rulebook Consolidation Process: Effective Dates of New Consolidated Rules; Introduction of Rule Conversion Chart); see also Information Notice 03/12/08 (Rulebook Consolidation Process).
2 The current FINRA rulebook includes (1) NASD Rules and (2) rules incorporated from NYSE (Incorporated NYSE Rules) (together, the NASD Rules and Incorporated NYSE Rules are referred to as the Transitional Rulebook). While the NASD Rules generally apply to all FINRA members, the Incorporated NYSE Rules apply only to those members of FINRA that are also members of the NYSE (Dual Members). The new FINRA Rules will apply to all member firms, unless such rules have a more limited application by their terms. As the Consolidated FINRA Rulebook expands with the SEC's approval and with the new FINRA Rules taking effect, the rules in the Transitional Rulebook that address the same subject matter of regulation will be eliminated. When the Consolidated FINRA Rulebook is completed, the Transitional Rulebook will have been eliminated in its entirety.
3See Exchange Act Release No. 58421 (August 25, 2008), 73 FR 51032 (August 29, 2008) (Order Approving Proposed Rule Change; File No. SR-FINRA-2008-025); Exchange Act Release No. 58461 (September 4, 2008), 73 FR 52710 (September 10, 2008) (Order Approving Proposed Rule Change; File No. SR-FINRA-2008-033); Exchange Act Release No. 58514 (September 11, 2008), 73 FR 54190 (September 18, 2008) (Order Approving Proposed Rule Change; SR-FINRA-2008-039); Exchange Act Release No. 58643 (September 25, 2008), 73 FR 57174 (October 1, 2008) (Order Approving Proposed Rule Change; File Nos. SR-FINRA-2008-021; SR-FINRA-2008-022; SR-FINRA-2008-026; SR-FINRA-2008-028 and SR-FINRA-2008-029); Exchange Act Release No. 58660 (September 26, 2008), 73 FR 57393 (October 2, 2008) (Order Approving Proposed Rule Change; File No. SR-FINRA-2008-027); Exchange Act Release No. 58661 (September 26, 2008), 73 FR 57395 (October 2, 2008) (Order Approving Proposed Rule Change; File No. SR-FINRA-2008-030).
4See Attachment endnote 1.
5 FINRA updates the rule text in its online Manual within two business days of SEC approval of changes to the rule text.
6See Exchange Act Release No. 58643 (September 25, 2008), 73 FR 57174 (October 1, 2008) (Order Approving Proposed Rule Change; File No. SR-FINRA-2008-022).
7See Exchange Act Release No. 58643 (September 25, 2008), 73 FR 57174 (October 1, 2008) (Order Approving Proposed Rule Change; File No. SR-FINRA-2008-029).
Attachment: List of Approved FINRA Rules (and Related Rule Filings)
The SEC approved the following new FINRA Rules in August and September 2008. The effective date of these rules is December 15, 2008. The new rules are grouped by the rule filing that FINRA submitted to the SEC in connection with the rule change. The hyperlink to each of the rule filings is included.
FINRA Rule Filing SR-FINRA-2008-021
www.finra.org/Industry/Regulation/RuleFilings/2008/P038544
The rule change transfers from the Transitional Rulebook to the Consolidated FINRA Rulebook the NASD Rule 4000 through 14000 Series, with the exception of the Rule 11000 Series (Uniform Practice Code). The NASD Rule 4000 through 7000 Series generally involve regulatory requirements and fees for quoting, trading, reporting, clearing and comparing over-the-counter transactions. The NASD Rule 8000 Series involves investigations and sanctions. The NASD Rule 9000 Series involves disciplinary procedures. The NASD Rule 10000, 12000, 13000 and 14000 Series involve Dispute Resolution (arbitration and mediation) procedures. The rule change adopts these rule series in their entirety as FINRA Rules as part of the Consolidated FINRA Rulebook, with certain non-material changes. The new rules occupy the Rule 6000 through 10000 Series and the Rule 12000 through 14000 Series in the Consolidated FINRA Rulebook as set forth in the tables below.
| Rule/Series No. | Rule/Series Title |
| Rule 6110 | Trading Otherwise than on an Exchange |
| Rule 6120 | Trading Halts |
| Rule 6121 | Trading Halts Due to Extraordinary Market Volatility1 |
| Rule 6130 | Transactions Related to Initial Public Offerings |
| Rule 6140 | Other Trading Practices |
| Rule 6150 | Obligation to Provide Information |
| Rule 6160 | Multiple MPIDs for Trade Reporting Facility Participants |
| Rule 6170 | Primary and Additional MPIDs for Alternative Display Facility Participants |
| Rule 6180 Series | Transaction Reporting |
| Rule 6181 | Timely Transaction Reporting |
| Rule 6182 | Trade Reporting of Short Sales |
| Rule 6183 | Exemption from SEC Regulation NMS-Related Trade Reporting Requirements |
| Rule/Series No. | Rule/Series Title |
| Rule 6210 | General |
| Rule 6220 | Definitions |
| Rule 6230 | Use of Alternative Display Facility Data Systems |
| Rule 6240 | Prohibition from Locking or Crossing Quotations in NMS Stocks |
| Rule 6250 | Quote and Order Access Requirements |
| Rule 6260 | Review of Direct or Indirect Access Complaints |
| Rule 6270 Series | Quoting and Trading in ADF-Eligible Securities |
| Rule 6271 | Registration as an ADF Market Maker or ADF ECN |
| Rule 6272 | Character of Quotations |
| Rule 6273 | Normal Business Hours |
| Rule 6274 | Clearance and Settlement |
| Rule 6275 | Withdrawal of Quotations |
| Rule 6276 | Voluntary Termination of Registration |
| Rule 6277 | Suspension and Termination of Quotations by FINRA Action |
| Rule 6278 | Termination of Alternative Display Facility Data System Service |
| Rule 6279 | Alternative Trading Systems |
| Rule 6280 Series | Transaction Reporting |
| Rule 6281 | Reporting Transactions in ADF-Eligible Securities |
| Rule 6282 | Transactions Reported by Members to TRACS |
| Rule/Series No. | Rule/Series Title |
| Rule 6300A Series | FINRA/NASDAQ Trade Reporting Facility |
| Rule 6310A | General |
| Rule 6320A | Definitions |
| Rule 6330A | Use of FINRA/Nasdaq Trade Reporting Facility on a Test Basis |
| Rule 6340A | Reports |
| Rule 6350A | Clearance and Settlement |
| Rule 6360A | Suspension and Termination by FINRA Action |
| Rule 6370A | Termination of FINRA/Nasdaq Trade Reporting Facility Service |
| Rule 6380A | Transaction Reporting |
| Rule 6300B Series | FINRA/NSX Trade Reporting Facility |
| Rule 6310B | General |
| Rule 6320B | Definitions |
| Rule 6330B | Use of FINRA/NSX Trade Reporting Facility on a Test Basis |
| Rule 6340B | Reports |
| Rule 6350B | Clearance and Settlement |
| Rule 6360B | Suspension and Termination by FINRA Action |
| Rule 6370B | Termination of FINRA/NSX Trade Reporting Facility Service |
| Rule 6380B | Transaction Reporting |
| Rule 6300C Series | FINRA/NYSE Trade Reporting Facility |
| Rule 6310C | General |
| Rule 6320C | Definitions |
| Rule 6330C | Use of FINRA/NYSE Trade Reporting Facility on a Test Basis |
| Rule 6340C | Reports |
| Rule 6350C | Clearance and Settlement |
| Rule 6360C | Suspension and Termination by FINRA Action |
| Rule 6370C | Termination of FINRA/NYSE Trade Reporting Facility Service |
| Rule 6380C | Transaction Reporting |
| Rule No. | Rule Title |
| Rule 6410 | General |
| Rule 6420 | Definitions |
| Rule 6430 | Recording of Quotation Information |
| Rule 6440 | Submission of SEA Rule 15c2-11 Information on Non-Exchange-Listed Securities |
| Rule 6450 | Minimum Quotation Size Requirements For OTC Equity Securities |
| Rule 6460 | Trading and Quotation Halt in OTC Equity Securities |
| Rule No. | Rule Title |
| Rule 6510 | Applicability |
| Rule 6520 | Operation of the Service |
| Rule 6530 | OTCBB-Eligible Securities |
| Rule 6540 | Requirements Applicable to Market Makers |
| Rule 6550 | Transaction Reporting |
| Rule 6560 | Limit Order Protection2 |
| Rule/Series No. | Rule/Series Title |
| Rule 6610 | General |
| Rule 6620 Series | Reporting Transactions in OTC Equity Securities |
| Rule 6621 | Definitions |
| Rule 6622 | Transaction Reporting |
| Rule 6623 | Timely Transaction Reporting |
| Rule 6624 | Trade Reporting of Short Sales |
| Rule 6630 Series | Reporting Transactions in PORTAL® Securities |
| Rule 6631 | Definitions |
| Rule 6632 | Limitations on Transactions in PORTAL Securities |
| Rule 6633 | Reporting Debt and Equity Transactions in PORTAL Securities |
| Rule 6634 | Arbitration |
| Rule 6635 | FINRA Rules |
| Rule 6640 Series | Reporting Transactions in Direct Participation Program Securities |
| Rule 6641 | General |
| Rule 6642 | Definitions |
| Rule 6643 | Transaction Reporting |
| Rule No. | Rule Title |
| Rule 6710 | Definitions |
| Rule 6720 | Participation in TRACE |
| Rule 6730 | Transaction Reporting |
| Rule 6740 | Termination of TRACE Service |
| Rule 6750 | Dissemination of Transaction Information |
| Rule 6760 | Managing Underwriter or Group of Underwriters Obligation To Obtain CUSIP and Provide Notice |
| Rule No. | Rule Title |
| Rule 7110 | Definitions |
| Rule 7120 | Participation in TRACS Trade Comparison Feature by Participants in the Alternative Display Facility |
| Rule 7130 | Trade Report Input |
| Rule 7140 | TRACS Processing |
| Rule 7150 | Obligation to Honor Trades |
| Rule 7160 | Audit Trail Requirements |
| Rule 7170 | Termination of TRACS Service |
| Rule/Series No. | Rule/Series Title |
| Rule 7200A Series | FINRA/NASDAQ Trade Reporting Facility |
| Rule 7210A | Definitions |
| Rule 7220A | Trade Reporting Participation Requirements |
| Rule 7230A | Trade Report Input |
| Rule 7240A | Trade Report Processing |
| Rule 7250A | Obligation to Honor Trades |
| Rule 7260A | Audit Trail Requirements |
| Rule 7270A | Violation of Reporting Rules |
| Rule 7280A | Termination of Access |
| Rule 7200B Series | FINRA/NSX Trade Reporting Facility |
| Rule 7210B | Definitions |
| Rule 7220B | Trade Reporting Participation Requirements |
| Rule 7230B | Trade Report Input |
| Rule 7240B | Trade Report Processing |
| Rule 7250B | Obligation to Honor Trades |
| Rule 7260B | Audit Trail Requirements |
| Rule 7270B | Violation of Reporting Rules |
| Rule 7280B | Termination of Access |
| Rule 7200C Series | FINRA/NYSE Trade Reporting Facility |
| Rule 7210C | Definitions |
| Rule 7220C | Trade Reporting Participation Requirements |
| Rule 7230C | Trade Report Input |
| Rule 7240C | Trade Report Processing |
| Rule 7250C | Obligation to Honor Trades |
| Rule 7260C | Audit Trail Requirements |
| Rule 7270C | Violation of Reporting Rules |
| Rule 7280C | Termination of Access |
| Rule No. | Rule Title |
| Rule 7310 | Definitions |
| Rule 7320 | Trade Reporting Participation Requirements |
| Rule 7330 | Trade Report Input |
| Rule 7340 | Trade Report Processing |
| Rule 7350 | Obligation to Honor Trades |
| Rule 7360 | Audit Trail Requirements |
| Rule 7370 | Violation of Reporting Rules |
| Rule 7380 | Termination of Access |
| Rule No. | Rule Title |
| Rule 7410 | Definitions |
| Rule 7420 | Applicability |
| Rule 7430 | Synchronization of Member Business Clocks |
| Rule 7440 | Recording of Order Information |
| Rule 7450 | Order Data Transmission Requirements |
| Rule 7460 | Violation of Order Audit Trail System Rules |
| Rule 7470 | Exemption to the Order Recording and Data Transmission Requirements |
| Rule No. | Rule Title |
| Rule 7510 | System Services |
| Rule 7520 | Equipment Related Charges |
| Rule 7530 | Installation, Removal, Relocation or Maintenance |
| Rule 7540 | Other Services |
| Rule 7550 | Partial Month Charges |
| Rule 7560 | Late Fees |
| Rule 7570 | Minor Modifications in Charges |
| Rule/Series No. | Rule/Series Title |
| Rule 7600A Series | Charges for FINRA/NASDAQ Trade Reporting Facility Services |
| Rule 7610A | Securities Transaction Credit |
| Rule 7620A | FINRA/Nasdaq Trade Reporting Facility Reporting Fees |
| Rule 7630A | Aggregation of Activity of Affiliated Members |
| Rule 7640A | Late Fees |
| Rule 7600B Series | Charges for FINRA/NSX Trade Reporting Facility Services |
| Rule 7610B | Securities Transaction Credits3 |
| Rule 7620B | FINRA/NSX Trade Reporting Facility Reporting Fees |
| Rule 7630B | Fee for Submission of Non-Media Reports |
| Rule 7600C Series | Charges for FINRA/NYSE Trade Reporting Facility Services |
| Rule 7610C | Securities Transaction Credit |
| Rule 7620C | FINRA/NYSE Trade Reporting Facility Reporting Fees |
| Rule No. | Rule Title |
| Rule 7710 | OTC Reporting Facility |
| Rule 7720 | OTC Bulletin Board Service |
| Rule 7730 | Trade Reporting and Compliance Engine (TRACE) |
| Rule 7740 | Historical Research and Administrative Reports |
| Rule No. | Rule Title |
| Rule 8110 | Availability of Manual to Customers |
| Rule 8120 | Definitions |
| Rule No. | Rule Title |
| Rule 8210 | Provision of Information and Testimony and Inspection and Copying of Books |
| Rule 8211 | Automated Submission of Trading Data Requested by FINRA |
| Rule 8213 | Automated Submission of Trading Data for Non-Exchange-Listed Securities Requested by FINRA |
| Rule No. | Rule Title |
| Rule 8310 | Sanctions for Violation of the Rules |
| Rule 8311 | Effect of a Suspension, Revocation, Cancellation, or Bar |
| Rule 8312 | FINRA BrokerCheck Disclosure |
| Rule 8313 | Release of Disciplinary Complaints, Decisions and Other Information |
| Rule 8320 | Payment of Fines, Other Monetary Sanctions, or Costs; Summary Action for Failure to Pay |
| Rule 8330 | Costs of Proceedings |
| Rule/Series No. | Rule/Series Title |
| Rule 9110 | Application |
| Rule 9120 | Definitions |
| Rule 9130 Series | Service; Filing of Papers |
| Rule 9131 | Service of Complaint and Document Initiating a Proceeding |
| Rule 9132 | Service of Orders, Notices, and Decisions by Adjudicator |
| Rule 9133 | Service of Papers Other Than Complaints, Orders, Notices, or Decisions |
| Rule 9134 | Methods of, Procedures for Service |
| Rule 9135 | Filing of Papers with Adjudicator: Procedure |
| Rule 9136 | Filing of Papers: Form |
| Rule 9137 | Filing of Papers: Signature Requirement and Effect |
| Rule 9138 | Computation of Time |
| Rule 9140 Series | Proceedings |
| Rule 9141 | Appearance and Practice; Notice of Appearance |
| Rule 9142 | Withdrawal by Attorney or Representative |
| Rule 9143 | Ex Parte Communications |
| Rule 9144 | Separation of Functions |
| Rule 9145 | Rules of Evidence; Official Notice |
| Rule 9146 | Motions |
| Rule 9147 | Rulings on Procedural Matters |
| Rule 9148 | Interlocutory Review |
| Rule 9150 | Exclusion From Rule 9000 Series Proceeding |
| Rule 9160 | Recusal or Disqualification |
| Rule/Series No. | Rule/Series Title |
| Rule 9210 Series | Complaint and Answer |
| Rule 9211 | Authorization of Complaint |
| Rule 9212 | Complaint Issuance—Requirements, Service, Amendment, Withdrawal, and Docketing |
| Rule 9213 | Assignment of Hearing Officer and Appointment of Panelists to Hearing Panel or Extended Hearing Panel |
| Rule 9214 | Consolidation or Severance of Disciplinary Proceedings |
| Rule 9215 | Answer to Complaint |
| Rule 9216 | Acceptance, Waiver, and Consent; Plan Pursuant to SEA Rule 19d-1(c)(2) |
| Rule 9217 | Violations Appropriate for Disposition Under Plan Pursuant to SEA Rule 19d-1(c)(2) |
| Rule 9220 Series | Request for Hearing; Extensions of Time, Postponements, Adjournments |
| Rule 9221 | Request for Hearing |
| Rule 9222 | Extensions of Time, Postponements, and Adjournments |
| Rule 9230 Series | Appointment of Hearing Panel, Extended Hearing Panel |
| Rule 9231 | Appointment by the Chief Hearing Officer of Hearing Panel or Extended Hearing Panel or Replacement Hearing Officer |
| Rule 9232 | Criteria for Selection of Panelists and Replacement Panelists |
| Rule 9233 | Hearing Panel or Extended Hearing Panel: Recusal and Disqualification of Hearing Officers |
| Rule 9234 | Hearing Panel or Extended Hearing Panel: Recusal and Disqualification of Panelists |
| Rule 9235 | Hearing Officer Authority |
| Rule 9240 Series | Pre-hearing Conference and Submission |
| Rule 9241 | Pre-hearing Conference |
| Rule 9242 | Pre-hearing Submission |
| Rule 9250 Series | Discovery |
| Rule 9251 | Inspection and Copying of Documents in Possession of Staff |
| Rule 9252 | Requests for Information |
| Rule 9253 | Production of Witness Statements |
| Rule 9260 Series | Hearing and Decision |
| Rule 9261 | Evidence and Procedure in Hearing |
| Rule 9262 | Testimony |
| Rule 9263 | Evidence: Admissibility |
| Rule 9264 | Motion for Summary Disposition |
| Rule 9265 | Record of Hearing |
| Rule 9266 | Proposed Findings of Fact, Conclusions of Law, and Post-Hearing Briefs |
| Rule 9267 | Record; Supplemental Documents Attached to Record; Retention |
| Rule 9268 | Decision of Hearing Panel or Extended Hearing Panel |
| Rule 9269 | Default Decisions |
| Rule 9270 | Settlement Procedure |
| Rule 9280 | Contemptuous Conduct |
| Rule 9290 | Expedited Disciplinary Proceedings |
| Rule/Series No. | Rule/Series Title |
| Rule 9310 Series | Appeal to or Review by National Adjudicatory Council |
| Rule 9311 | Appeal by Any Party; Cross-Appeal |
| Rule 9312 | Review Proceeding Initiated By Adjudicatory Council |
| Rule 9313 | Counsel to National Adjudicatory Council |
| Rule 9320 Series | Transmission of Record; Extensions of Time, Postponements, Adjournments |
| Rule 9321 | Transmission of Record |
| Rule 9322 | Extensions of Time, Postponements, Adjournments |
| Rule 9330 Series | Appointment of Subcommittee or Extended Proceeding Committee; Disqualification and Recusal |
| Rule 9331 | Appointment of Subcommittee or Extended Proceeding Committee |
| Rule 9332 | Disqualification and Recusal |
| Rule 9340 Series | Proceedings |
| Rule 9341 | Oral Argument |
| Rule 9342 | Failure to Appear at Oral Argument |
| Rule 9343 | Disposition Without Oral Argument |
| Rule 9344 | Failure to Participate Below; Abandonment of Appeal |
| Rule 9345 | Subcommittee or Extended Proceeding Committee Recommended Decision to National Adjudicatory Council |
| Rule 9346 | Evidence in National Adjudicatory Council Proceedings |
| Rule 9347 | Filing of Papers in National Adjudicatory Council Proceedings |
| Rule 9348 | Powers of the National Adjudicatory Council on Review |
| Rule 9349 | National Adjudicatory Council Formal Consideration; Decision |
| Rule 9350 Series | Discretionary Review by FINRA Board |
| Rule 9351 | Discretionary Review by FINRA Board |
| Rule 9360 | Effectiveness of Sanctions |
| Rule 9370 | Application to SEC for Review |
| Rule/Series No. | Rule/Series Title |
| Rule 9520 Series | Eligibility Proceedings |
| Rule 9521 | Purpose and Definitions |
| Rule 9522 | Initiation of Eligibility Proceeding; Member Regulation Consideration |
| Rule 9523 | Acceptance of Member Regulation Recommendations and Supervisory Plans by Consent Pursuant to SEA Rule 19h-1 |
| Rule 9524 | National Adjudicatory Council Consideration |
| Rule 9525 | Discretionary Review by the FINRA Board |
| Rule 9526 | Expedited Review |
| Rule 9527 | Application to SEC for Review |
| Rule 9550 Series | Expedited Proceedings |
| Rule 9551 | Failure to Comply with Public Communication Standards |
| Rule 9552 | Failure to Provide Information or Keep Information Current |
| Rule 9553 | Failure to Pay FINRA Dues, Fees and Other Charges |
| Rule 9554 | Failure to Comply with an Arbitration Award or Related Settlement |
| Rule 9555 | Failure to Meet the Eligibility or Qualification Standards or Prerequisites for Access to Services |
| Rule 9556 | Failure to Comply with Temporary and Permanent Cease and Desist Orders |
| Rule 9557 | Procedures for Regulating Activities Under NASD Rules 3130 and 3131 Regarding a Member Experiencing Financial or Operational Difficulties |
| Rule 9558 | Summary Proceedings for Actions Authorized by Section 15A(h)(3) of the Exchange Act |
| Rule 9559 | Hearing Procedures for Expedited Proceedings Under the Rule 9550 Series |
| Rule No. | Rule Title |
| Rule 9610 | Application |
| Rule 9620 | Decision |
| Rule 9630 | Appeal |
| Rule No. | Rule Title |
| Rule 9710 | Purpose |
| Rule 9720 | Form of Application |
| Rule 9730 | Request for Hearing |
| Rule 9740 | Consideration of Applications |
| Rule 9750 | Decision |
| Rule 9760 | Call for Review by the National Adjudicatory Council |
| Rule 9770 | Application to SEC for Review |
| Rule No. | Rule Title |
| Rule 9810 | Initiation of Proceeding |
| Rule 9820 | Appointment of Hearing Officer and Hearing Panel |
| Rule 9830 | Hearing |
| Rule 9840 | Issuance of Temporary Cease and Desist Order by Hearing Panel |
| Rule 9850 | Review by Hearing Panel |
| Rule 9860 | Violation of Temporary Cease and Desist Orders |
| Rule 9870 | Application to SEC for Review |
| Rule No. | Rule Title |
| IM-10100 | Failure to Act Under Provisions of Code of Arbitration Procedure |
| Rule 10101 | Matters Eligible for Submission |
| Rule 10102 | National Arbitration and Mediation Committee |
| Rule 10103 | Director of Arbitration |
| Rule 10104 | Composition and Appointment of Panels |
| IM-10104 | Arbitrators' Honorarium |
| Rule 10105 | Non-Waiver of FINRA Objects and Purposes |
| Rule 10106 | Legal Proceedings |
| Rule No. | Rule Title |
| Rule 10201 | Required Submission |
| Rule 10202 | Composition of Panels |
| Rule 10203 | Simplified Industry Arbitration |
| Rule 10204 | Applicability of Uniform Code |
| Rule 10205 | Schedule of Fees for Industry and Clearing Controversies |
| Rule 10210 | Statutory Employment Discrimination Claims |
| Rule 10211 | Special Arbitrator Qualifications for Employment Discrimination Disputes |
| Rule 10212 | Composition of Panels |
| Rule 10213 | Discovery |
| Rule 10214 | Awards |
| Rule 10215 | Attorneys' Fees |
| Rule 10216 | Coordination of Claims Filed in Court and in Arbitration |
| Rule 10217 | Fees |
| Rule No. | Rule Title |
| Rule 10301 | Required Submission |
| Rule 10302 | Simplified Arbitration |
| IM-10302 | Related Counterclaim |
| Rule 10303 | Hearing Requirements—Waiver of Hearing |
| Rule 10304 | Time Limitation Upon Submission |
| Rule 10305 | Dismissal of Proceedings |
| Rule 10306 | Settlements |
| Rule 10307 | Tolling of Time Limitation(s) for the Institution of Legal Proceedings and Extension of Time Limitation(s) for Submission to Arbitration |
| Rule 10308 | Selection of Arbitrators |
| IM-10308 | Arbitrators Who Also Serve as Mediators |
| Rule 10309 | Composition of Panels |
| Rule 10310 | Notice of Selection of Arbitrators |
| Rule 10311 | Peremptory Challenge |
| Rule 10312 | Disclosures Required of Arbitrators and Director's Authority to Disqualify |
| Rule 10313 | Disqualification or Other Disability of Arbitrators |
| Rule 10314 | Initiation of Proceedings |
| Rule 10315 | Determination of Hearing Location |
| Rule 10316 | Representation by Counsel |
| Rule 10317 | Attendance at Hearings |
| IM-10317 | Closing Arguments |
| Rule 10318 | Failure to Appear |
| Rule 10319 | Adjournments |
| Rule 10320 | Acknowledgement of Pleadings |
| Rule 10321 | General Provisions Governing Pre-Hearing Proceedings |
| Rule 10322 | Subpoenas and Power to Direct Appearances |
| Rule 10323 | Evidence |
| Rule 10324 | Interpretation of Provisions of Code and Enforcement of Arbitrator Rulings |
| Rule 10325 | Determination of Arbitrators |
| Rule 10326 | Record of Proceedings |
| Rule 10327 | Oaths of the Arbitrators and Witnesses |
| Rule 10328 | Amendments |
| Rule 10329 | Reopening of Hearings |
| Rule 10330 | Awards |
| Rule 10331 | Incorporation by Reference |
| Rule 10332 | Schedule of Fees for Customer Disputes |
| Rule 10333 | Member Surcharge and Process Fees |
| Rule 10334 | Direct Communication Between Parties and Arbitrators |
| Rule 10335 | Temporary Injunctive Orders; Requests for Permanent Injunctive Relief |
| Rule No. | Rule Title |
| IM-12000 | Failure to Act Under Provisions of Code of Arbitration Procedure for Customer Disputes |
| Rule 12100 | Definitions |
| Rule 12101 | Applicability of Code and Incorporation by Reference |
| Rule 12102 | National Arbitration and Mediation Committee |
| Rule 12103 | Director of Dispute Resolution |
| Rule 12104 | Effect of Arbitration on FINRA Regulatory Activities |
| Rule 12105 | Agreement of the Parties |
| Rule No. | Rule Title |
| Rule 12200 | Arbitration Under an Arbitration Agreement or the Rules of FINRA |
| Rule 12201 | Elective Arbitration |
| Rule 12202 | Claims Against Inactive Members |
| Rule 12203 | Denial of FINRA Forum |
| Rule 12204 | Class Action Claims |
| Rule 12205 | Shareholder Derivative Actions |
| Rule 12206 | Time Limits |
| Rule 12207 | Extension of Deadlines |
| Rule 12208 | Representation of Parties |
| Rule 12209 | Legal Proceedings |
| Rule 12210 | Ex Parte Communications |
| Rule 12211 | Direct Communications Between Parties and Arbitrators |
| Rule 12212 | Sanctions |
| Rule 12213 | Hearing Locations |
| Rule 12214 | Payment of Arbitrators |
| Rule No. | Rule Title |
| Rule 12300 | Filing and Serving Documents |
| Rule 12301 | Service on Associated Persons |
| Rule 12302 | Filing an Initial Statement of Claim |
| Rule 12303 | Answering the Statement of Claim |
| Rule 12304 | Answering Counterclaims |
| Rule 12305 | Answering Cross Claims |
| Rule 12306 | Answering Third Party Claims |
| Rule 12307 | Deficient Claims |
| Rule 12308 | Loss of Defenses Due to Untimely or Incomplete Answer |
| Rule 12309 | Amending Pleadings |
| Rule 12310 | Answering Amended Claims |
| Rule 12311 | Amendments to Amount in Dispute |
| Rule 12312 | Multiple Claimants |
| Rule 12313 | Multiple Respondents |
| Rule 12314 | Combining Claims |
| Rule No. | Rule Title |
| Rule 12400 | Neutral List Selection System and Arbitrator Rosters |
| Rule 12401 | Number of Arbitrators |
| Rule 12402 | Composition of Arbitration Panels |
| Rule 12403 | Generating and Sending Lists to the Parties |
| Rule 12404 | Striking and Ranking Arbitrators |
| Rule 12405 | Combining Lists |
| Rule 12406 | Appointment of Arbitrators; Discretion to Appoint Arbitrators Not on List |
| Rule 12407 | Additional Parties |
| Rule 12408 | Disclosures Required of Arbitrators |
| Rule 12409 | Arbitrator Recusal |
| Rule 12410 | Removal of Arbitrator by Director |
| Rule 12411 | Replacement of Arbitrators |
| Rule 12412 | Director's Discretionary Authority |
| Rule 12413 | Jurisdiction of Panel and Authority to Interpret the Code |
| Rule 12414 | Determinations of Arbitration Panel |
| Rule No. | Rule Title |
| Rule 12500 | Initial Prehearing Conference |
| Rule 12501 | Other Prehearing Conferences |
| Rule 12502 | Recording Prehearing Conferences |
| Rule 12503 | Motions |
| Rule 12505 | Cooperation of Parties in Discovery |
| Rule 12506 | Document Production Lists |
| Rule 12507 | Other Discovery Requests |
| Rule 12508 | Objecting to Discovery; Waiver of Objection |
| Rule 12509 | Motions to Compel Discovery |
| Rule 12510 | Depositions |
| Rule 12511 | Discovery Sanctions |
| Rule 12512 | Subpoenas |
| Rule 12513 | Authority of Panel to Direct Appearances of Associated Person Witnesses and Production of Documents Without Subpoenas |
| Rule 12514 | Exchange of Documents and Witness Lists Before Hearing |
| Rule No. | Rule Title |
| Rule 12600 | Required Hearings |
| Rule 12601 | Postponement of Hearings |
| Rule 12602 | Attendance at Hearings |
| Rule 12603 | Failure to Appear |
| Rule 12604 | Evidence |
| Rule 12605 | Witness Oath |
| Rule 12606 | Record of Proceedings |
| Rule 12607 | Order of Presentation of Evidence and Arguments |
| Rule 12608 | Closing the Record |
| Rule 12609 | Reopening the Record |
| Rule No. | Rule Title |
| Rule 12700 | Dismissal of Proceedings Prior to Award |
| Rule 12701 | Settlement |
| Rule 12702 | Withdrawal of Claims |
| Rule No. | Rule Title |
| Rule 12800 | Simplified Arbitration |
| Rule 12801 | Default Proceedings |
| Rule No. | Rule Title |
| Rule 12900 | Fees Due When a Claim Is Filed |
| Rule 12901 | Member Surcharge |
| Rule 12902 | Hearing Session Fees, and Other Costs and Expenses |
| Rule 12903 | Process Fees Paid by Members |
| Rule 12904 | Awards |
| Rule No. | Rule Title |
| IM-13000 | Failure to Act Under Provisions of Code of Arbitration Procedure for Industry Disputes |
| Rule 13100 | Definitions |
| Rule 13101 | Applicability of Code and Incorporation by Reference |
| Rule 13102 | National Arbitration and Mediation Committee |
| Rule 13103 | Director of Dispute Resolution |
| Rule 13104 | Effect of Arbitration on FINRA Regulatory Activities |
| Rule 13105 | Agreement of the Parties |
| Rule No. | Rule Title |
| Rule 13200 | Required Arbitration |
| Rule 13201 | Statutory Employment Discrimination Claims |
| Rule 13202 | Claims Involving Registered Clearing Agencies |
| Rule 13203 | Denial of FINRA Forum |
| Rule 13204 | Class Action Claims |
| Rule 13205 | Shareholder Derivative Actions |
| Rule 13206 | Time Limits |
| Rule 13207 | Extension of Deadlines |
| Rule 13208 | Representation of Parties |
| Rule 13209 | Legal Proceedings |
| Rule 13210 | Ex Parte Communications |
| Rule 13211 | Direct Communication Between Parties and Arbitrators |
| Rule 13212 | Sanctions |
| Rule 13213 | Hearing Locations |
| Rule 13214 | Payment of Arbitrators |
| Rule No. | Rule Title |
| Rule 13300 | Filing and Serving Documents |
| Rule 13301 | Service on Associated Persons |
| Rule 13302 | Filing an Initial Statement of Claim |
| Rule 13303 | Answering the Statement of Claim |
| Rule 13304 | Answering Counterclaims |
| Rule 13305 | Answering Cross Claims |
| Rule 13306 | Answering Third Party Claims |
| Rule 13307 | Deficient Claims |
| Rule 13308 | Loss of Defenses Due to Untimely or Incomplete Answer |
| Rule 13309 | Amending Pleadings |
| Rule 13310 | Answering Amended Claims |
| Rule 13311 | Amendments to Amount in Dispute |
| Rule 13312 | Multiple Claimants |
| Rule 13313 | Multiple Respondents |
| Rule 13314 | Combining Claims |
| Rule No. | Rule Title |
| Rule 13400 | Neutral List Selection System and Arbitrator Rosters |
| Rule 13401 | Number of Arbitrators |
| Rule 13402 | Composition of Arbitration Panels Not Involving a Statutory Discrimination Claim |
| Rule 13403 | Generating and Sending Lists to the Parties |
| Rule 13404 | Striking and Ranking Arbitrators |
| Rule 13405 | Combining Lists |
| Rule 13406 | Appointment of Arbitrators; Discretion to Appoint Arbitrators Not on List |
| Rule 13407 | Additional Parties |
| Rule 13408 | Disclosures Required of Arbitrators |
| Rule 13409 | Arbitrator Recusal |
| Rule 13410 | Removal of Arbitrator by Director |
| Rule 13411 | Replacement of Arbitrators |
| Rule 13412 | Director's Discretionary Authority |
| Rule 13413 | Jurisdiction of Panel and Authority to Interpret the Code |
| Rule 13414 | Determinations of Arbitration Panel |
| Rule No. | Rule Title |
| Rule 13500 | Initial Prehearing Conference |
| Rule 13501 | Other Prehearing Conferences |
| Rule 13502 | Recording Prehearing Conferences |
| Rule 13503 | Motions |
| Rule 13505 | Cooperation of Parties in Discovery |
| Rule 13506 | Discovery Requests |
| Rule 13507 | Responding to Discovery Requests |
| Rule 13508 | Objecting to Discovery Requests; Waiver of Objection |
| Rule 13509 | Motions to Compel Discovery |
| Rule 13510 | Depositions |
| Rule 13511 | Discovery Sanctions |
| Rule 13512 | Subpoenas |
| Rule 13513 | Authority of Panel to Direct Appearances of Associated Person Witnesses and Production of Documents Without Subpoenas |
| Rule 13514 | Exchange of Documents and Witness Lists Before Hearing |
| Rule No. | Rule Title |
| Rule 13600 | Required Hearings |
| Rule 13601 | Postponement of Hearings |
| Rule 13602 | Attendance at Hearings |
| Rule 13603 | Failure to Appear |
| Rule 13604 | Evidence |
| Rule 13605 | Witness Oath |
| Rule 13606 | Record of Proceedings |
| Rule 13607 | Order of Presentation of Evidence and Arguments |
| Rule 13608 | Closing the Record |
| Rule 13609 | Reopening the Record |
| Rule No. | Rule Title |
| Rule 13700 | Dismissal of Proceedings Prior to Award |
| Rule 13701 | Settlement |
| Rule 13702 | Withdrawal of Claims |
| Rule No. | Rule Title |
| Rule 13800 | Simplified Arbitration |
| Rule 13801 | Default Proceedings |
| Rule 13802 | Statutory Employment Discrimination Claims |
| Rule 13803 | Coordination of Statutory Employment Discrimination Claims Filed in Court and in Arbitration |
| Rule 13804 | Temporary Injunctive Orders; Requests for Permanent Injunctive Relief |
| Rule No. | Rule Title |
| Rule 13900 | Fees Due When a Claim Is Filed |
| Rule 13901 | Member Surcharge |
| Rule 13902 | Hearing Session Fees, and Other Costs and Expenses |
| Rule 13903 | Process Fees Paid by Members |
| Rule 13904 | Awards |
| Rule No. | Rule Title |
| Rule 14100 | Definitions |
| Rule 14101 | Applicability of Code |
| Rule 14102 | National Arbitration and Mediation Committee |
| Rule 14103 | Director of Mediation |
| Rule 14104 | Mediation under the Code |
| Rule 14105 | Effect of Mediation on Arbitration Proceedings |
| Rule 14106 | Representation of Parties |
| Rule 14107 | Mediator Selection |
| Rule 14108 | Limitation on Liability |
| Rule 14109 | Mediation Ground Rules |
| Rule 14110 | Mediation Fees |
FINRA Rule Filing SR-FINRA-2008-025
www.finra.org/Industry/Regulation/RuleFilings/2008/P038707
The rule change transfers NASD Rule 2790 (Restrictions on the Purchase and Sale of Initial Equity Public Offerings) in substantially the same form to the Consolidated FINRA Rulebook as FINRA Rule 5130. The rule change makes minor, technical changes to the rule to reflect, for example, the registration of the NASDAQ Stock Market, LLC as a national securities exchange.
FINRA Rule 5130 protects the integrity of the initial public offering (IPO) process by ensuring that: (1) firms make bona fide public offerings of securities at the offering price; (2) firms do not withhold securities in a public offering for their own benefit or use such securities to reward persons who are in a position to direct future business to firms; and (3) industry insiders, including firms and their associated persons, do not take advantage of their insider position to purchase new issues for their own benefit at the expense of public customers. FINRA Rule 5130 plays an important part in maintaining investor confidence in the capital raising and IPO process.
| Rule No. | Rule Title |
| Rule 5130 | Restrictions on the Purchase and Sale of Initial Equity Public Offerings |
FINRA Rule Filing SR-FINRA-2008-026
www.finra.org/Industry/Regulation/RuleFilings/2008/P038730
The rule change adopts the NASD Rule 0100 Series (General Provisions) as FINRA Rules in the Consolidated FINRA Rulebook, with the exception of NASD Rule 0120, which will be addressed at a later date in a separate filing. The NASD Rule 0100 Series governs the adoption, application and interpretation of NASD rules and sets forth certain definitions not contained in the FINRA By-Laws. Additionally, these rules address FINRA's delegation of certain responsibilities to its subsidiaries, and its authority and access with respect to its subsidiaries. FINRA is transferring this rule series as the FINRA Rule 0100 Series, renamed as "General Standards," to the Consolidated FINRA Rulebook, with only minor changes. FINRA notes that, notwithstanding their transfer to the Consolidated FINRA Rulebook, these rules of general applicability apply equally to both the Transitional Rulebook and the Consolidated FINRA Rulebook.
| Rule/Series No. | Rule /Series Title |
| Rule 0100 Series | General Standards |
| Rule 0110 | Adoption of Rules |
| Rule 0120 | Effective Date |
| Rule 0130 | Interpretation |
| Rule 0140 | Applicability |
| Rule 0150 | Application of Rules to Exempted Securities Except Municipal Securities |
| Rule 0160 | Definitions in FINRA By-Laws |
| Rule 0170 | Delegation, Authority and Access |
FINRA Rule Filing SR-FINRA-2008-027
www.finra.org/Industry/Regulation/RuleFilings/2008/P038723
The rule change adopts without material change NASD Rules 3060 (Influencing or Rewarding Employees of Others) and 3090 (Transactions Involving Association and American Stock Exchange Employees) as FINRA Rules in the Consolidated FINRA Rulebook and deletes the corresponding provisions in Incorporated NYSE Rules 350, 350.10, 407(a), 407.10 and NYSE Rule Interpretations 350/01 through 350/03. The rule change renumbers NASD Rule 3060 as FINRA Rule 3220 and NASD Rule 3090 as FINRA Rule 2070 in the Consolidated FINRA Rulebook.
FINRA Rule 3220 (Influencing or Rewarding Employees of Others) states that no member or associated person shall give gifts or gratuities to an agent or employee of another person in excess of $100 per year where the gift or gratuity is in relation to the business of the employer of the recipient. The rule protects against improprieties that may arise when members or their associated persons give gifts or gratuities. FINRA Rule 2070 (Transactions Involving FINRA Employees) addresses conflicts of interest involving FINRA employees.
| Rule No. | Rule Title |
| Rule 2070 | Transactions Involving FINRA Employees |
| Rule 3220 | Influencing or Rewarding Employees of Others |
FINRA Rule Filing SR-FINRA-2008-028
www.finra.org/Industry/Regulation/RuleFilings/2008/P038732
The rule change adopts NASD Rules 2110 (Standards of Commercial Honor and Principles of Trade), 2120 (Use of Manipulative, Deceptive or Other Fraudulent Devices), and 2290 (Fairness Opinions) as FINRA Rules in the Consolidated FINRA Rulebook without material change and deletes Incorporated NYSE Rule 401(a) (Business Conduct), Incorporated NYSE Rule 435 (Miscellaneous Prohibitions), with the exception of paragraph (5), and NYSE Rule Interpretations 401/01 and 401/02. The rule change renumbers NASD Rule 2110 as FINRA Rule 2010, NASD Rule 2120 as FINRA Rule 2020, and NASD Rule 2290 as FINRA Rule 5150 in the Consolidated FINRA Rulebook.
FINRA Rule 2010 requires members, in the conduct of their business, to observe high standards of commercial honor and just and equitable principles of trade. Rule 2010 protects investors and the securities industry from dishonest practices that are unfair to investors or hinder the functioning of a free and open market, even though those practices may not be illegal or violate a specific rule or regulation. FINRA Rule 2020 is FINRA's general antifraud provision. FINRA has used this broad rule to address a wide variety of manipulative, deceptive, and fraudulent misconduct, including market manipulation, excessive trading, insider trading, and fraudulent misrepresentation. FINRA Rule 5150 requires specific disclosures and procedures addressing the conflicts of interest that arise when a broker-dealer provides a fairness opinion in a change of control transaction, such as a merger or sale or purchase of assets.
| Rule No. | Rule Title |
| Rule 2010 | Standards of Commercial Honor and Principles of Trade |
| Rule 2020 | Use of Manipulative, Deceptive or Other Fraudulent Devices |
| Rule 5150 | Fairness Opinions |
FINRA Rule Filing SR-FINRA-2008-030
www.finra.org/Industry/Regulation/RuleFilings/2008/P038786
The rule change adopts NASD Rule 3013 (Annual Certification of Compliance and Supervisory Processes) and IM-3013 (Annual Compliance and Supervision Certification) as a FINRA Rule in the Consolidated FINRA Rulebook without material change and deletes the corresponding provisions in Incorporated NYSE Rule 342.30 and NYSE Rule Interpretations 311(b)(5)/04 through /05 and 342.30(d)/01 through (e)/01. The rule change renumbers NASD Rule 3013 and IM-3013 as FINRA Rule 3130 in the Consolidated FINRA Rulebook.
FINRA Rule 3130 requires each member firm to designate one or more principals to serve as a chief compliance officer (CCO). The rule further requires that the chief executive officer(s) (CEO) certify annually that the member has in place processes to establish, maintain, review, modify and test policies and procedures reasonably designed to achieve compliance with applicable FINRA rules, MSRB rules and federal securities laws and regulations.
| Rule No. | Rule Title |
| Rule 3130 | Annual Certification of Compliance and Supervisory Processes |
FINRA Rule Filing SR-FINRA-2008-033
www.finra.org/Industry/Regulation/RuleFilings/2008/P038813
The rule change adopts the short interest reporting requirements (NASD Rule 3360 and Incorporated NYSE Rules 421(1) and 421.10) as FINRA Rule 4560 (Short-Interest Reporting) in the Consolidated FINRA Rulebook. FINRA Rule 4560 requires members to report short positions in OTC Equity Securities and exchange-listed securities. Members must report total short positions in all customer and proprietary accounts as of the settlement dates designated, and in the manner prescribed, by FINRA. (Currently, such information must be reported twice a month and is, in turn, made publicly available on an aggregate basis twice a month.)
| Rule No. | Rule Title |
| Rule 4560 | Short-Interest Reporting |
FINRA Rule Filing SR-FINRA-2008-039
www.finra.org/Industry/Regulation/RuleFilings/2008/P038926
The rule change (1) adopts NASD Rule 2710 (Corporate Financing Rule—Underwriting Terms and Arrangements), without material change except for paragraphs (b)(10) and (11), as a FINRA Rule in the Consolidated FINRA Rulebook and (2) clarifies and streamlines the notice and other requirements in FINRA Rules relating to Regulation M under the Securities Exchange Act (including paragraphs (b)(10) and (11) of NASD Rule 2710 and paragraph (a) of Incorporated NYSE Rule 392). The rule change renumbers NASD Rule 2710 as FINRA Rule 5110 and adopts new FINRA Rules 5190 and 6470 in the Consolidated FINRA Rulebook. (New FINRA Rule 5190 houses the Regulation M-related notice requirements applicable to members participating in securities offerings, including paragraphs (b)(10) and (11) of NASD Rule 2710 and paragraph (a) of Incorporated NYSE Rule 392. New FINRA Rule 6470 houses certain Regulation M-related requirements that are currently in the OTC Bulletin Board rules and applies to all OTC Equity Securities.)
| Rule No. | Rule Title |
| Rule 5110 | Corporate Financing Rule—Underwriting Terms and Arrangements |
| Rule 5190 | Notification Requirements for Offering Participants |
| Rule 6470 | Withdrawal of Quotations in an OTC Equity Security in Compliance with SEC Regulation M |
FINRA Rule Filing SR-FINRA-2008-022
www.finra.org/Industry/Regulation/RuleFilings/2008/P038543
The rule change addresses the applicability of the consolidated FINRA Rules to member firms of the NYSE that became members of FINRA pursuant to the membership waive-in process set in forth in NASD IM-1013-1 (Membership Waive-In Process for Certain New York Stock Exchange Member Organizations) (such firms are referred to as Waive-In Firms). Specifically, the rule change amends IM-1013-1 to specify that the Waive-In Firms will be subject to FINRA's By-Laws and Schedules to By-Laws, including Schedule A, the consolidated FINRA Rules and the Incorporated NYSE Rules, provided that their securities business is limited to the permitted floor activities. If a Waive-In Firm seeks to expand its business operations to include any activities other than the permitted floor activities, the firm must continue to apply for and receive approval pursuant to NASD Rule 1017. Upon approval of such expansion, the firm would be subject to all NASD Rules, in addition to the consolidated FINRA Rules and the Incorporated NYSE Rules.
FINRA Rule Filing SR-FINRA-2008-029
www.finra.org/Industry/Regulation/RuleFilings/2008/P038766
The rule change repeals NASD Rule 1130 (Reliance on Current Membership List) and Incorporated NYSE Rules 405A (Non-Managed Fee-Based Account Programs—Disclosure and Monitoring), 440F (Public Short Sale Transactions Effected on the Exchange), 440G (Transactions in Stocks and Warrants for the Accounts of Members, Allied Members and Member Organizations) and 477 (Retention of Jurisdiction—Failure to Cooperate) to eliminate duplicative provisions and remove requirements that are specific to the NYSE marketplace.
1 FINRA Rule 6121 took effect on October 7, 2008, pursuant to a separate filing. See Exchange Act Release No. 58753 (October 8, 2008), 73 FR 61177 (October 15, 2008) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change; File No. SR-FINRA-2008-048). Rule 6121 permits FINRA to halt over-the-counter trading in NMS stocks, as defined in Rule 600(b)(47) of SEC Regulation NMS, if other major U.S. securities markets initiate market-wide trading halts in response to extraordinary market conditions or if otherwise directed by the SEC.
2 FINRA Rule 6560 corresponds to NASD Rule 6541 in the Transitional Rulebook. FINRA has deleted NASD Rule 6541, effective November 11, 2008, pursuant to separate filings. Accordingly, FINRA does not intend to implement Rule 6560 when the other FINRA Rules included in this Notice become effective. See Regulatory Notice 08-49 (September 2008) (Trading Ahead of Customer Limit Orders); see also Exchange Act Release No. 58532 (September 12, 2008), 73 FR 54649 (September 22, 2008) (Order Approving Proposed Rule Change; File No. SR-NASD-2007-041); Exchange Act Release No. 55351 (February 26, 2007), 72 FR 9810 (March 5, 2007) (Order Granting Accelerated Approval of Proposed Rule Change; File No. SR-NASD-2005-146).
3 FINRA has deleted FINRA Rule 7610B pursuant to a separate filing, effective October 20, 2008. (FINRA Rule 7610B corresponds to NASD Rule 7001C in the Transitional Rulebook.) See File No. SR-FINRA-2008-050. Accordingly, FINRA does not intend to implement Rule 7610B when the other FINRA Rules included in this Notice become effective.