FINRA rule amendment requires registration of associated persons who develop algorithmic trading strategies

Abstract

Purpose

To analyze a recently approved FINRA rule amendment that will require registration with FINRA of associated persons of FINRA-member firms who are primarily responsible for the design, development or significant modification of an algorithmic trading strategy.

Design/methodology/approach

This article discusses the rationale and details of the proposed requirements.

Findings

The amended FINRA rule, particularly when combined with the SEC’s proposed amendments to Rule 15b9-1 under the Securities and Exchange Act of 1934, will result in many individuals who currently are not subject to a FINRA registration requirement to pass a qualification examination and register.

Originality/value

This article contains valuable information about important FINRA rule-making activity.

Citation

Foley, M.T., Angstadt, J.M., Pazzol, R. and Van De Graaff, J.D. (2016), "FINRA rule amendment requires registration of associated persons who develop algorithmic trading strategies", Journal of Investment Compliance, Vol. 17 No. 3, pp. 39-41. https://doi.org/10.1108/JOIC-07-2016-0028