FINRA Makes Permanent Pilot Program on Clearly Erroneous Transactions
FINRA made permanent its pilot program amendments to the rules on clearly erroneous transactions in exchange-listed securities.
As previously covered, FINRA's amendments to Rule 11892 ("Clearly Erroneous Transactions in Exchange-Listed Securities") make the pilot program permanent and "limit the circumstances where clearly erroneous review would continue to be available during regular trading hours." The now permanent program provides (i) uniform treatment of clearly erroneous execution reviews for multi-stock events involving 20 or more securities and (ii) reduced ability of FINRA to deviate from the objective standards set forth in Rule 11892.
The amendments are immediately effective and comments are due by October 26, 2022.