Other Rule Filings Incorporated by Reference
Bats BZX Exchange, Inc. ("BZX"), Bats BYX Exchange, Inc. ("BYX"), Bats EDGA Exchange, Inc. ("EDGA") and Bats EDGX Exchange, Inc. ("EDGX") (collectively known as the "Exchanges") have incorporated certain rules by reference from other self-regulatory organization ("SRO") rulebooks. As such, the Exchanges will periodically provide updates where applicable when there are new proposals or approvals to amend these incorporated rules by the other SROs. The Rule Filings are not effective until approved by the Securities and Exchange Commission ("SEC"), with the exception of certain types of rule filings that may take effect upon filing with the SEC if they meet the conditions specified under Section 19 of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder. Below are descriptions of the Exchanges' rules incorporated by reference from other SROs, along with any current proposals/approvals filed by the SROs.
FINRA Rule Filings to Amend FINRA Rule 2241 – Research Analysts and Research Reports
Pursuant to BZX, BYX, EDGA and EDGX Rule 3.13:
- Except as provided in paragraph (b), no Member shall directly or indirectly, give, permit to be given, or offer to give anything of value to any person for the purpose of influencing or rewarding the action of such person in connection with the publication or circulation in any electronic or other public media, including any investment service or similar publication, website, newspaper, magazine or other periodical, radio or television program of any matter that has, or is intended to have, an effect upon the market price of any security.
The prohibitions in paragraph (a) shall not apply to compensation paid to a person in connection with the publication or circulation of:
- a communication that is clearly distinguishable as paid advertising;
- a communication that discloses the receipt of compensation and the amount thereof in accordance with Section 17(b) of the Securities Act; or
- a research report, as that term is defined in FINRA Rule 2241.
As a result of BZX, BYX, EDGA and EDGX Rule 3.13, changes to FINRA Rule 2241 could have an impact on a member's compliance with the rule. Accordingly, below are links to pending FINRA rule filings with the SEC seeking to amend FINRA Rule 2241 as well as any SEC orders approving or disapproving those FINRA rule filings.
Proposed Rule Change to Adopt FINRA Rule 2241 (Research Analysts and Research Reports) in the Consolidated FINRA Rulebook