FINRA Issues First Cross-Market Equity Supervision Report Cards

FINRA issued its first equities supervision report cards, which are designed to indicate potential problems that must be reviewed in order to assist firms in identifying and preventing spoofing and layering activities. The new report cards were sent to member firms and identifies potential spoofing or layering by the firm or entities to which the firm is providing market access. According to the release, "the reports provide a summary of the identified market activity, detailed information about the exceptions, and trends in such trading over the preceding six months. The report cards do not reflect conclusions that violations have occurred; rather they indicate potential problems that need to be reviewed."