FINRA Quotation Rules

What this video covers

• What makes a quote or transaction report bona fide, and why a fictitious quote with no genuine trading interest behind it violates FINRA rules
• The anti-backing-away rule: why a market maker who refuses to honor a firm quoted price commits conduct inconsistent with just and equitable principles of trade
• Every activity prohibited during a trading halt: transactions, priced quotations, unpriced indications of interest (IOIs), and modified bids or offers
• The sole exception to the trading halt prohibition: activity permitted under the Limit Up-Limit Down (LULD) plan
• Why broker-dealers must review current and publicly available information before initiating or resuming any over-the-counter (OTC) quotation
• What happens to non-compliant OTC companies moved to the OTC Expert Market, and why retail investors cannot view those quotes
• How proper identification of quotations (firm, subject, nominal) prevents investor confusion between actionable prices and informational estimates