Chairwoman Waters, Ranking Member McHenry and Members of the Committee:
Introduction
On behalf of the Financial Industry Regulatory Authority, or FINRA, I want to thank you for the opportunity to appear today to discuss the important role that our organization plays in the regulation of broker-dealers and to share our response to the January market events related to trading in GameStop and
NASD, through its wholly owned subsidiary, NASD Dispute Resolution, Inc. ("NASD Dispute Resolution"), is filing with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to provide for the payment of a $200 honorarium per case for each arbitrator who considers contested motions for the issuance of subpoenas.
(a) No member that is promoting a day-trading strategy, directly or indirectly, shall open an account for or on behalf of a non-institutional customer, unless, prior to opening the account, the member has furnished to the customer the risk disclosure statement set forth in Rule 2270 and has:
(1) approved the customer's account for a day-trading strategy in accordance with the
Please do not impose Rule #22-08 on the investment community. As with any investment, users of leveraged ETFs should understand the risks associated with ownership.The committee could write a pamphlet that would accompany the prospectus.
Forum Selection Provisions Involving Customers, Associated Persons and Member Firms
TO: All NASD Members
The Association has been, receiving an increased number of inquiries regarding the application of Article III, Section 26 of the Rules of Fair Practice to certain compensation arrangements, and proposed arrangements, between principal underwriters and dealers in open-end management investment company shares (mutual funds) and unit investment trusts. These inquiries are
Proposed Rule Change to Delay the Implementation Date of the Trade Reporting Amendments Approved Pursuant to SR-FINRA-2013-050
Proposed Rule Change to Require Registration as Securities Traders of Associated Persons Primarily Responsible for the Design, Development or Significant Modification of Algorithmic Trading Strategies
Proposed Rule Change to Amend FINRA Rules 7410 (Definitions) and 7440 (Recording of Order Information)
Proposed Rule Change to Reduce the Synchronization Tolerance for Computer Clocks that are Used to Record Events in NMS Securities and OTC Equity Securities
