The Financial Industry Regulatory Authority has issued an immediately effective rule change reinforcing its position that it will defer to an exchange’s clearly erroneous determinations with respect to over-the-counter trades in exchange-listed securities when FINRA is deciding which similarly-situated transactions are subject to nullification by FINRA. FINRA states in the release that it believes this clarification is necessary to promote consistency among self-regulatory organizations. Comments are due to the Securities and Exchange Commission on or before August 27.
Click here to read Securities and Exchange Commission Release No. 34-62608.