FINRA Podcast: Fall 2014 Firm Element Advisory - Part 3

FINRA released the third and final podcast in a series on topics to consider when planning Firm Element training, as identified in the CE Council's Fall 2014 Firm Element Advisory.

The podcast focused on topics including:

• new changes to Clearly Erroneous Execution Rules for SROs to address multi-day clearly erroneous events and transactions occurring during trading holds;
• additional certifications under FINRA information compliance rules, which now require firms to certify that they are not accepting payment from an issuer for publishing a quotation or acting as a market maker as outlined in Regulatory Notice 14-26;
• new FINRA Supervision Rule 3110, which requires firms to include in their supervisory procedures a process for reviewing transactions in certain types of accounts;
• new supplementary material to FINRA's Transactions and Quotations Rule to address self-trades, which requires firms to have policies and procedures in place that are "reasonably" designed to review trading activity for a pattern or practice of self-trades originating from a single algorithm or trading desk; and
• a FINRA interpretation to clarify the classification and trade-reporting of certain hybrid securities, outlined in Regulatory Notice 14-23.