FINRA Proposal Reduces Trade Report Time

On February 1, 2013, FINRA proposed a rule change that would require brokerage firms to report trades within 10 seconds rather than 30 seconds. The new rule change would apply to all equity transactions, including companies not listed on an exchange, and order cancellations. FINRA has proposed this rule to help ensure that trade data…

Uniform Fiduciary Duty Proposal on the Horizon

A uniform fiduciary duty for broker-dealers and advisers has been a prevalent topic since 2010 when the Dodd-Frank Financial Reform Act was signed into law. Despite the SEC’s initial efforts to study whether a uniform fiduciary duty was appropriate, the subsequent process of implementing the uniform fiduciary duty stalled over the last couple of years…

Texas Trader Charged with Affinity Fraud

On January 29, 2013, the SEC charged Firas Hamdan, a day trader in Sugar Land, TX, with “defrauding investors in his supposed high-frequency trading program and providing them falsified brokerage records that drastically overstated assets and hid his massive trading losses.” “The SEC alleges that Firas Hamdan particularly targeted fellow members of the Houston-area Lebanese…