A firm settled FINRA charges for placing bids that were well under market value in response to bid-wanted auctions or requests for quotes in municipal securities, thereby failing to exercise its best judgment in determining the fair market value of the securities.
FINRA reminded members of their obligations regarding (i) the performance of due diligence on customers seeking to open trade options, (ii) the supervisory reviews of options accounts and (iii) margin requirements for options.
FINRA proposed a rule change that would extend from April 30, 2021 to August 31, 2021 the expiration date for temporary amendments that (i) provide relief to FINRA staff from certain enforcement and procedural requirements and (ii) allow virtual hearings.
A firm settled FINRA charges for failing to (i) properly designate personnel as either public side or private side, (ii) reasonably supervise communications between them and (iii) escalate communications that disclosed potential material nonpublic information.
FINRA reminded its members of their ongoing obligations during times of market volatility, obligations which include duty of best execution, proper disclosures, adjustment of margin requirements and strong liquidity management.