Proposed Amendment To FINRA Rule 5131

On April 18, 2011, the Financial Industry Regulatory Authority, Inc. ("FINRA") filed a proposed rule change with the Securities and Exchange Commission ("SEC") which proposes to amend paragraphs (b) and (d)(4) of FINRA Rule 5131 (the "Amendment").¹ The proposed changes amend the spinning provisions (Rule 5131(b)) and the market order provisions (Rule 5131(d)(4)). In addition, the Amendment proposes delaying the effective date for the spinning provisions and the market order provisions to September 26, 2011, an additional four months. On April 26, 2011, the SEC released a notice regarding the rule change and solicited comments from the public.² Comments are due on or prior to the date that is 15 days from the publication of the notice in the Federal Register. The SEC declared that, within 45 days of the date of publication of the notice in the Federal Register or within such longer period (i) as the SEC may designate (up to 90 days of such date if the SEC finds such