FINRA Proposed Rule Relating to “Stop” & “Stop Limit” Orders

SIFMA provides comments to the Securities and Exchange Commission (SEC) on the Financial Industry Regulatory Authority’s (FINRA’s) proposed Rule 5350. In its proposal, FINRA would retain the current transaction-based trigger for activating “stop” and “stop limit” orders that is set forth in existing FINRA Rule 6140, but also would permit members to offer an alternative trigger to activate a market or limit order, so long as such alternative order type is clearly distinguishable from a stop order or a stop limit order. (Re: Securities Exchange Act Release No. 34-67085 (File No. SR-FINRA-2012-026))