SEC Approves Sweeping Insider Trading Oversight Plan for 26 Exchanges
Published Date: 5/7/2026
Notice
Summary
The SEC just approved a new update to how 26 stock exchanges and regulators work together to catch and stop insider trading. This means these groups will share responsibilities more clearly and efficiently starting right away, helping keep the market fair without extra costs. If you trade or work with these exchanges, expect smoother oversight and quicker action against rule-breakers.
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Analyzed Economic Effects
6 provisions identified: 2 benefits, 3 costs, 1 mixed.
FINRA Is Assigned Insider‑Trading Oversight
On the Plan's Effective Date (SEC declared effective on May 4, 2026), FINRA will assume regulatory responsibility for surveillance, investigation, and enforcement of insider trading for Common FINRA Members with respect to NMS Stocks, regardless of which participating exchange the trading occurs on. The Plan relieves the other Participating Organizations of those allocated responsibilities.
Quarterly Fees Charged to Participating Organizations
FINRA will charge each Participating Organization a Quarterly Fee in arrears based on that organization's 'Percentage of Publicly Reported Trades' over three-month billing periods. If a Participating Organization's percentage of publicly reported trades for the period is less than 1.0%, the Quarterly Fee is $6,250 per quarter (a 'Static Fee').
FINRA Ownership of New Intellectual Property; Maintenance Fees
The Plan states FINRA will remain owner of its existing proprietary Intellectual Property (including the SONAR system) and any New IP created by FINRA; Participating Organizations irrevocably assign rights in such New IP to FINRA. FINRA will not charge fees for New IP but may charge fees for software maintenance on systems used to perform its duties.
Payment Defaults Can Lead to Termination
A Participating Organization may cancel participation with 180 days' written notice (subject to SEC approval). FINRA will invoice for Fees; a Participating Organization has 30 days from receipt to satisfy an invoice and 30 days from receipt of a Default notice to cure. If an organization Defaults on paying invoices more than three times in any rolling 24‑month period, FINRA may terminate the Regulatory Responsibilities it assumed for that organization.
Exchanges Must Forward Insider‑Trading Complaints to FINRA
If a Participating Organization receives a customer complaint relating to insider trading or conduct within FINRA's allocated responsibilities, the Participating Organization must promptly forward a copy of that customer complaint to FINRA.
Participating Orgs Must Make Personnel Available and Pay Travel
Each Participating Organization must make personnel available to FINRA to serve as testimonial or non‑testimonial witnesses as necessary for FINRA to fulfill the Regulatory Responsibilities; Participating Organizations must pay reasonable travel and other expenses when FINRA requires employees to serve as witnesses or provide assistance.
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