The Financial Industry Regulatory Authority is proposing a rule change regarding the handling of stop orders. FINRA is proposing to delete FINRA Rule 6140(h), which would then permit members to determine whether the trigger of a stop order should be based on transactions or quotations in the subject security at the stop price. FINRA also is proposing to delete FINRA Rule 6140(i), which defines the terms “stop stock price” and “stop stock transaction,” and, in an effort to reduce confusion for members, to relocate the definition of “initial public offering” from FINRA Rule 6220 to FINRA Rule 6130.

Click here to read SEC Release 34-63256.