FINRA Quotation Rules

What this video covers

• Why every published transaction and quotation must be bona fide, and what happens if a member publishes a fictitious trade
• What backing away means: refusing to honor a firm quotation after making an offer at a stated price, and why it violates just and equitable principles of trade
• The complete freeze during a trading halt: no transactions, no priced quotes, no unpriced indications of interest, and no modified unsolicited-customer quotes
• The single exception to the trading-halt freeze: activity permitted under the Limit Up-Limit Down (LULD) plan
• Why broker-dealers must review current and publicly available information before initiating or resuming OTC quotations, and what counts as a reliable source
• What the OTC Expert Market is, why companies get sent there, and the critical restriction that retail investors cannot see those quotes
• How FINRA's identification of quotations requirement prevents misleading investors by distinguishing nominal quotes from firm quotes