On April 7, 2016, the Securities and Exchange Commission (SEC) approved a proposed rule change by the Financial Industry Regulatory Authority (FINRA) that requires registration as Securities Traders of associated persons of FINRA members that are primarily responsible for the design, development or significant modification of algorithmic trading strategies.1 Associated persons who are responsible for the day-to-day supervision or direction of such activities would also be required to register. Associated persons falling under the expanded rule will be required to pass the requisite qualifications examination and will be subject to applicable continuing education requirements.
1 Securities Exchange Act of 1934 Release No. 77551, 81 FR 21914 (April 13, 2016), available at: https://www.gpo.gov/fdsys/pkg/FR-2016-04-13/pdf/2016-08424.pdf.
2 See FINRA Regulatory Notice 15-09, available at: https://www.finra.org/sites/default/files/notice_doc_file_ref/Notice_Regulatory_15-09.pdf.
3 See Mary Jo White, Chair, Commission, Enhancing our Equity Market Structure, Speech at the Sandler, O’Neill & Partners, L.P. Global Exchange and Brokerage Conference (June 5, 2014), available at: https://www.sec.gov/News/Speech/Detail/Speech/1370542004312.
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