FAQ on Market Orders and Delayed Implementation Date for FINRA Rule 5131(b) and (d)(4)

FINRA RN 11-29

June 17, 2011

FINRA published an FAQ to provide guidance to firms regarding the implementation of its new Rule 5131, governing the allocation and distribution of new issues. In particular, the guidance discusses Rule 5131(b), which prohibits "spinning," and Rule 5131(d)(4), which prohibits firms from accepting market orders for the purchase of shares in a new issue in the secondary market prior to beginning of trading in the new shares.

Cross References

FINRA Rule 5131

FINRA RN 10-60 (announcing approval of Rule 5131)

SR-NASD-2003-140 (rulemaking to approve Rule 5131)