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FINRA Requests Comment on Rules Applicable to Government Securities

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.

©2019 Katten Muchin Rosenman LLP


About this Author

James M. Brady, Katten Muchin Law Firm, Finance Attorney

James Brady concentrates his practice in financial services matters.

While in law school, James was an editor of the Michigan Journal of International Law. He also served as a judicial intern to the Honorable Stephen J. Markman of the Michigan Supreme Court.

Janet M. Angstadt, Securities, Financial Services, Chicago, Lawyer, Katten Law FIrm

Janet M. Angstadt is the head of Katten's Chicago Financial Services practice. She focuses her practice on broker-dealer and exchange compliance issues and advises companies on matters regarding compliance with the regulations of the US Securities and Exchange Commission (SEC) and self-regulatory organizations (SROs).

Janet represents clients in a wide range of legal and regulatory matters, including mergers and acquisitions, SRO investigations, compliance issues related to registrations, sales practice, short sales, Regulation NMS, market-making and options and equities order handling. She advises on alternative trading systems, including dark pools and electronic communication networks, policies and procedures for trading systems development and testing and exchange-traded funds (ETFs).