Federal Register: FINRA Proposes Requiring Additional Disclosure to Retail Customers for Fixed Income Securities Transactions
The SEC solicited comment on a FINRA proposal to amend FINRA Rule 2232 (Customer Confirmations) to require members to disclose markups on certain transactions in corporate debt or agency securities with retail customers (i.e., customers that are not institutional accounts as defined in FINRA Rule 4512(c)). The request for comment was published in the Federal Register.
The disclosure requirement would apply where (i) the firm traded with a retail customer in a specified type of security and (ii) the firm executed an offsetting transaction in the same security, on the same day, in a size at least equal to the size of the customer's trade.
Comments on the FINRA proposal must be submitted by September 9, 2016.
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