On November 29th, the Financial Industry Regulatory Authority announced that the SEC has approved new FINRA Rule 5131 (New Issue Allocations and Distributions), which prohibits certain abuses in the allocation and distribution of new issues. Among other things, the rule prohibits quid pro quo allocations and "spinning," and addresses the conduct of member firms (and associated persons) in the areas of book-building, new issue pricing, penalty bids, trading and waivers of lock-up agreements. The new rule is effective May 27, 2011. FINRA Regulatory Notice 10-60.