FINRA Reminds Firms of Rule 5131(d)(4)'s Prohibition on Accepting Market Orders for the Purchase of New Issues Prior to the Commencement of Trading on the Secondary Market (FINRA Regulatory Notice)

FINRA Reg. Notice 12-24

This Notice reminds firms that FINRA Rule 5131(d)(4) prohibits firms from accepting a market order for the purchase of shares in a new issue in the secondary market prior to the commencement of trading of such shares in the secondary market.

Cross References: FINRA Rule 5130; FINRA Rule 5131; Regulatory Notice 10-60; Regulatory Notice 11-29.

For more information about this document, you may contact one of the following Cadwalader attorneys: Steven D. Lofchie; Nihal S. Patel.