FINRA's Rule 5250 to be amended

04/25/2013 | Securities Technology Monitor

FINRA has filed a proposal with the SEC that will amend its Rule 5250 which prohibits the use of market-making payments by exchanges. Since the rule currently prohibits undocumented agreements between issuers and market makers, there is some concern that the amendment might lead to market manipulation. However, the amendment does follow a similar SEC-approved program initiated by the Nasdaq and a program from NYSE Euronext that is still awaiting SEC approval.

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