The Financial Industry Regulatory Authority, Inc. (FINRA) proposed a rule change to its compliance rules to align with an exemption granted by the Securities and Exchange Commission (SEC). This amendment focuses on allocation reporting requirements related to trading activities. Under the proposed changes, brokers who actually perform allocations will be responsible for reporting these activities to a central repository, rather than brokers who do not have this information. This change aims to reduce the reporting burden on brokers while still providing regulators with necessary information to oversee market trades. The amendment is intended to improve efficiency without imposing additional costs on industry members.
Simple Explanation
FINRA wants to make it easier for people who buy and sell stocks to report their actions. Instead of everyone reporting everything, only the people who actually perform these actions have to say what they did. This change will help them avoid doing extra work while still making sure that the rules are followed.