At its April 2013 board meeting, the Financial Industry Regulatory Authority (FINRA) Board of Governors approved several proposed rule changes that will be submitted to the SEC for review and approval. The proposed rulemaking items discussed at the meeting include:

  • Dissemination of Trade Reporting and Compliance Engine (TRACE)-Eligible Rule 144A Transactions
  • Alternative Display Facility Market Participant Requirements
  • Arbitration Panel Composition
  • Discovery Guide Used in Investor Arbitration Proceedings
  • Customer Account Statements

In a letter to FINRA representatives, FINRA chairman and CEO Richard Ketchum called attention to the proposal to publicly disseminate Rule 144A transactions in TRACE-eligible securities for those asset types currently subject to dissemination. Mr. Ketchum explained that FINRA has taken this step after reviewing the comments submitted in response to its September 2012 Regulatory Notice and in light of JOBS Act provisions.

Specifically, FINRA proposes to amend FINRA Rule 6750 and the TRACE dissemination protocols to disseminate Rule 144A transactions, provided that the asset type currently is subject to dissemination under FINRA Rule 6750, and apply the same dissemination caps for Rule 144A transactions that are currently in effect for non-Rule 144A transactions in similar securities. FINRA Rule 7730 also would be amended to establish a Historic Rule 144A Data Set, and extend fees currently in effect for similar real-time disseminated data and Historic TRACE Data to the respective Rule 144A Data Sets.

FINRA believes that making this information publicly available will help market participants determine the quality of their executions and help firms comply with their regulatory obligations.

Mr. Ketchum's letter can be accessed here: