The U. S. Securities and Exchange Commission (SEC) approved a new rule for the Financial Industry Regulatory Authority (FINRA), governing organization of Broker-Dealers and their Registered Representatives.
FINRA Rule 5350 (Stop Orders) requires brokerage firms that trigger stop orders based on the quote (bid/ask) rather than the last trade (transaction) to rename the order types to distinguish how the order is triggered. Please note, this is simply a naming convention and does not change how a Broker-Dealer triggers or executes orders.
Starting January 16, 2013, stop order names will be updated.
For your convenience, we have attached Regulatory Notice 12-50.
Chris Bryant, MBA, RFC® is the founder and chief executive officer (CEO) of Bryant Wealth Management, Inc., an independent, fee-only, registered investment adviser. Bryant provides financial planning services for individuals and organizations. Since 1999, Chris has devoted himself to the practice of financial services – helping people make money, save money, protect money, have convenience and peace of mind. Connect with Chris by E-mail or call toll-free 1-800-980-3048.
Chris Bryant is an American financial advisor.