The Financial Industry Regulatory Authority (FINRA) is requesting comment on the applicability of various FINRA rules to government securities. After undertaking a review of its rulebook, FINRA has identified several rules that currently exclude or do not clearly apply to US Treasury securities or other government securities. FINRA has determined that the application of these rules would benefit from additional industry comment. These rules include: FINRA Rule 2242 (Debt Research Analysts and Debt Research Reports); FINRA Rule 5240 (Anti-Intimidation/Coordination); FINRA Rule 5250 (Payments for Market Making); FINRA Rule 5270 (Front Running of Block Transactions); FINRA Rule 5280 (Trading Ahead of Research Reports); FINRA Rule 5320 (Prohibition Against Trading Ahead of Customer Orders); NASD Rule 1032(f) (Securities Trader); NASD Rule 1032(i) (Limited Representative – Investment Banking); and NASD Rule 1050 (Registration of Research Analysts).
FINRA also is seeking comment on whether to apply FINRA Rule 5320 and NASD Rules 1032(f) and 1050 to other types of debt securities, in addition to government securities.
Comments should be sent to FINRA no later than April 9.
FINRA Regulatory Notice 18-05 is available here.