A member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.Cross References–1122, Filing of Misleading Information as to Membership or Registration2111, Suitability2121.01, Mark-Up Policy2342, "Breakpoint" Sales5130, Restrictions on the Purchase and Sale of Initial Equity Public Offerings5210, Publication of
The Reg NMS Trade Through Report Card is a monthly statistical report detailing the transactions in NMS Securities that appear to have been reported by your firm to a Trade Reporting Facility ("TRF") or to FINRA's Alternative Display Facility at a price that traded through at least one protected best bid or offer at the respective time of execution. If non-compliance with the Order
By Karen Braine, Vice President, Surveillance and Market Intelligence, Insider Trading DetectionFINRA’s Insider Trading Detection Program is designed to provide U.S. law enforcement and regulators worldwide with actionable intelligence about potential insider trading that occurs on the U.S. markets. The intelligence we provide — over 450 referrals in 2023 alone — routinely result in criminal and
Corporate mergers and acquisitions can have a significant impact on the value of stock held by investors. But apart from the potential for sudden price changes for impacted shares, what else do investors need to know about mergers and acquisitions?
On March 16, 2023, FINRA published responses to frequently asked questions concerning the MMTLP corporate action and trading halt (March 16, 2023, MMTLP FAQ). In that corporate action, the issuer decided that MMTLP shares would be cancelled and investors in those shares would receive a distribution of shares of Next Bridge Hydrocarbons, Inc. (Next Bridge). FINRA has continued to receive questions regarding the circumstances surrounding these events. In particular, some have questioned the level of short selling in MMTLP and suggested that there was a substantial amount of “counterfeit shares.” Although it is not clear what is meant by the term “counterfeit shares,” it has been used in social media when discussing “naked” short selling in a security and failures-to-deliver (FTDs). Some investors have expressed concern that, even though their brokerage account statements include shares of Next Bridge in their account, these shares may not have actually been delivered to their broker-dealer.
It is clear that the integrity of the United States market has been strained to the edge of collapse, in large part due to risk resulting under the regulatory authority of FINRA's outdated, short-interest reporting policy. While many of the policies mentioned in Regulatory Notice 21-19 address the general breadth of exploitable and ineffective reporting, they also leave significant specific
The integrity of the United States market has been strained to the edge of disaster, in large part due to systemic risk developed under the regulatory authority of FINRA's outdated short interest reporting policy. FINRA 21-19 is a long overdue change. The policies mentioned in Regulatory Notice 21-19 speak of exploitable and ineffective reporting, they also leave specific gaps that could
It is clear that the integrity of the United States market has been strained to the edge of collapse, in large part due to systemic risk developed under the regulatory authority of FINRA's outdated short interest reporting policy. While many of the policies mentioned in Regulatory Notice 21-19 address the general breadth of exploitable and ineffective reporting, they also leave significant
Brokerage firms are typically paid transaction-based compensation, which means the firm might have an incentive to encourage you to trade often. If you notice a seemingly high level of activity in your brokerage account, this could be a sign of a type of misconduct known as “excessive trading.”
FINRA 21-19 is a long overdue change. It is clear that the integrity of the United States market has been strained to the edge of disaster, in large part due to systemic risk developed under the regulatory authority of FINRA's outdated short interest reporting policy. While many of the policies mentioned in Regulatory Notice 21-19 address the general breadth of exploitable and ineffective
