MEMX LLC (“MEMX”) and MX2 LLC (“MX2” and together with MEMX, the “Exchanges”) have incorporated by reference certain rules of other self-regulatory organizations (“SROs”). As such, the Exchanges will periodically provide updates where applicable when there are new proposals or approvals to amend these incorporated rules by other SROs. 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 relevant updates.
FINRA Rule 2210 (MEMX Rule 3.5, MX2 Chapter 3)
Description: Proposed Rule Change to Amend FINRA Rule 2210 (Communications with the Public) to Permit Projections of Performance in Institutional Communications and Specified Communications to Qualified Purchasers
Available at: https://www.finra.org/rules-guidance/rule-filings/sr-finra-2023-016.
FINRA Rule 2220 (MEMX Rule 26.16, MX2 Chapter 26)
No pending or recently effective changes.
FINRA Rule 2268 (MEMX Rule 9.3, MX2 Chapter 9)
No pending or recently effective changes.
FINRA Rule 5270 (MEMX Rule 12.14(a), MX2 Chapter 12)
No pending or recently effective changes.
FINRA Code of Arbitration – FINRA Series 12000 and 13000 (MEMX Rule 9.1, MX2 Chapter 9)
Description: Proposed Rule Change to Amend the Codes of Arbitration Procedure to Make Clarifying, Technical and Procedural Changes to the Arbitrator List Selection Process
Available at: https://www.finra.org/rules-guidance/rule-filings/sr-finra-2024-022
Description: Proposed Rule Change to Amend the Codes of Arbitration Procedure to Accelerate the Processing of Arbitration Proceedings for Parties Who Qualify Based on their Age or Health Condition
Available at: https://www.finra.org/rules-guidance/rule-filings/sr-finra-2024-021
Description: Proposal to amend the FINRA Codes of Arbitration Procedure and Code of Mediation Procedure to Revise and Restate the Qualifications for Representatives in Arbitrations and Mediations
Available at: https://www.finra.org/rules-guidance/rule-filings/sr-finra-2023-013
Description: Proposal to amend the Code of Arbitration Procedure for Customer Disputes and the Code of Arbitration Procedure for Industry Disputes to make changes to provisions relating to the arbitrator list selection process in response to recommendations in the report of independent counsel Lowenstein Sandler LLP.
Available at: https://www.finra.org/sites/default/files/2022-12/sr-finra-2022-033.pdf
Description: Proposed Rule Change to Change References in the Codes of Arbitration Procedure from the Neutral List Selection System to the List Selection Algorithm
Available at: https://www.finra.org/rules-guidance/rule-filings/sr-finra-2022-026
Description: Proposed Rule Change to Amend the Codes of Arbitration Procedure to Modify the Current Process relating to the Expungement of Customer Dispute Information
Available at: https://www.finra.org/rules-guidance/rule-filings/sr-finra-2022-024
Description: Proposed Rule Change to Make Technical and Other Non-Substantive Changes within the Codes of Arbitration Procedure
Available at: https://www.finra.org/rules-guidance/rule-filings/sr-finra-2022-022
Description: Proposed Rule Change to Amend the Code of Arbitration Procedure for Industry Disputes to Align the Code with the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021
Available at: https://www.finra.org/rules-guidance/rule-filings/sr-finra-2022-012
Description: Proposed Rule Change to Amend FINRA Rules (Including FINRA Codes of Arbitration and Mediation) to Reflect Name Changes to Two FINRA Departments: (1) the Office of Dispute Resolution and (2) the Department of Registration and Disclosure
Available at: https://www.finra.org/rules-guidance/rule-filings/sr-finra-2020-039
Description: Proposed Rule Change to Amend the FINRA Codes of Arbitration Procedure to Increase Arbitrator Chairperson Honoraria and Certain Arbitration Fees
Available at: https://www.finra.org/rules-guidance/rule-filings/sr-finra-2020-035
Description: Proposed Amendments to the Codes of Arbitration Procedure Relating to Requests to Expunge Customer Dispute Information, Including Creating a Special Arbitrator Roster to Decide Certain Expungement Requests
Available at: https://www.finra.org/rules-guidance/rule-filings/sr-finra-2020-030
FINRA Code of Mediation – FINRA Series 14000 (MEMX Rule 9.7, MX2 Chapter 9)
Description: Proposal to amend the FINRA Codes of Arbitration Procedure and Code of Mediation Procedure to Revise and Restate the Qualifications for Representatives in Arbitrations and Mediations
Available at: https://www.finra.org/rules-guidance/rule-filings/sr-finra-2023-013
Description: Proposed Rule Change to Amend FINRA Rules (Including FINRA Codes of Arbitration and Mediation) to Reflect Name Changes to Two FINRA Departments: (1) the Office of Dispute Resolution and (2) the Department of Registration and Disclosure
Available at: https://www.finra.org/rules-guidance/rule-filings/sr-finra-2020-039
MX2 has incorporated the following MEMX rules:
- MEMX Chapter 3 (“Rules of Fair Practice”)
- MEMX Chapter 4 (“Books and Records”)
- MEMX Chapter 5 (“Supervision”)
- MEMX Chapter 6 (“Extensions of Credit”)
- MEMX Chapter 7 (“Suspension by Chief Regulatory Officer”)
- MEMX Chapter 8 (“Discipline”)
- MEMX Chapter 9 (“Arbitration”)
- MEMX Chapter 10 (“Adverse Action”)
- MEMX Chapter 12 (“Trading Practice Rules”)
- MEMX Chapter 13 (“Miscellaneous Provisions”)
- MEMX Chapter 14 (“Trading on an Unlisted Trading Privileges Basis”)
- MEMX Chapter 18 (“Business Conduct”)
- MEMX Chapter 19 (“Securities Traded on MX2 Options”)
- MEMX Chapter 23 (“Exercises and Deliveries”)
- MEMX Chapter 24 (“Records, Reports and Audits”)
- MEMX Chapter 26 (“Doing Business With the Public”)
- MEMX Chapter 27 (“Options Order Protection and Locked and Crossed Markets Rules”)
- MEMX Chapter 28 (“Margin Requirements”)
- MEMX Chapter 29 (“Index Rules”)