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May 10, 2018 at 11:24 AM
Amendments to the Financial Industry Regulatory Authority’s Customer Confirmations Rule 2232 requiring broker-dealers to disclose additional transaction-related information to retail customers for trades in certain fixed income securities take effect on Monday.
The amended rule, approved by the Securities and Exchange Commission, requires broker-dealers to disclose the amount of markup or markdown it applies to trades with retail customers in corporate or agency debt securities if the member also executes an offsetting principal trade in the same security on the same trading day.
The Municipal Securities Rulemaking Board adopted substantially similar requirements.
Amendments to FINRA Rule 2232 specifically requires a member to disclose the amount of mark-up or mark-down it applies to trades with retail customers in corporate or agency debt securities if the member also executes an offsetting principal trade in the same security on the same trading day.
The new rule also requires members to disclose two additional items on all retail customer confirmations for corporate and agency debt security trades: a reference, and a hyperlink if the confirmation is electronic, to a web page hosted by FINRA that contains publicly available trading data for the specific security that was traded, and the execution time of the transaction, expressed to the second.
