EDA Asks FINRA Not to Move Forward with Desk Commentary Proposal

The EDA sent a letter to FINRA recommending that it not move forward with its Proposal to provide a safe harbor for desk commentary. The EDA believes that the Proposal is not workable, it lacks an adequate cost-benefit analysis, it misconstrues how the sales and trading business of its membership works in practice, and it puts examiners in the unenviable position of evaluating desk commentary under the subjective “I know it, when I see it” standard. The Proposal imposes the exact type of regulatory overreach that we believe FINRA’s new leadership should seek to avoid.

EDA Submission to FINRA on Regulatory Notice 17-16