The Nasdaq Stock Market LLC has proposed a rule change to the Securities and Exchange Commission that would allow it to take over the responsibility from the Financial Industry Regulatory Authority (FINRA) for litigating contested disciplinary proceedings related to Nasdaq-led investigations. This shift aims to improve the efficiency and speed of handling such cases by leveraging Nasdaq's expertise and avoiding the need for FINRA to get involved. Nasdaq also proposes changes to its rules to enable its regulation department to directly serve complaints and memoranda in disciplinary cases. The proposal does not alter the existing procedural protections and would still involve FINRA’s Office of Hearing Officers in administering the hearing process.
Simple Explanation
Nasdaq wants to take charge of handling its own rule-breaking cases instead of letting another group called FINRA do it, hoping it will make things quicker and smoother without changing any of the rules that keep the process fair. However, this change raises questions, like whether it will cost more money, how it will work with Nasdaq being both a market leader and rule enforcer, and if everything will still be as fair as before.