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US Corporate Law News: revised FINRA customer confirmation rule takes effect

20 May 2018 | Applicable law: US

Approved by the SEC, the Amendments to the Financial Industry Regulatory Authority's Customer Confirmation Rule 2232 (the "Amended FINRA Rules") took effect on May 12, 2018. 

The Amended FINRA Rules require broker-dealers to disclose additional transaction-related information to retail customers who trade in certain fixed income securities. Pursuant to the Amended FINRA Rules, a FINRA member is now specifically required to disclose the amount of mark-up or mark-down it applies to trades with retail customers in corporate or agency debt securities if the member also executes an offsetting principal trade in the same security on the same trading day. 

In addition, the Amended FINRA Rules now also require its members to provide additional line items on all retail customer confirmations for corporate and agency debt security trades, including reference and hyperlink to a web page hosted by FINRA that contains publicly available trading data for the specific security that was traded, and the execution time of the transaction, expressed to the second.

For more information, see here.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.

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