FINRA proposes requiring registration of associated persons who develop algorithmic trading strategies

To analyze FINRA’s proposal that would 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.

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

If adopted in its current form, the proposed rule-making, particularly when combined with the SEC’s proposed amendments to Rule 15b9-1 under the Securities and Exchange Act, would result in many various individuals who currently are not subject to a FINRA registration requirement, to pass a qualification examination and register.

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