FINRA Podcast Highlights New and Updated Policies Regarding Options

FINRA released its third podcast in a four-part series that covers important topics in continuing education firm element training plans. The latest podcast focuses on the options market.

Current updates to policy include the following:

• The Chicago Board Options Exchange ("CBOE") and the C2 Options Exchange submitted rule filings regarding exchange liability, and payments to trading permit holders.
• CBOE added a broker practices rule that covers matters such as erroneously executed orders and error documentation and recordkeeping.
• CBOE added new rule provisions that require each trading permit holder to report information about executed stock or convertible security lags of various types of option orders.
• CBOE issued a regulatory circular to remind firms of its policy on prearranged trading. It cautioned trading permit holders that coupling any transaction with an agreement or understanding to reverse the transaction violates CBOE rules.