SEC Approves FINRA-24X Pact to Cut Regulatory Overlap
Published Date: 6/2/2025
Notice
Summary
The SEC just gave the green light to a new plan that splits up who watches over certain financial companies between FINRA and 24X National Exchange. This means fewer double-checks for companies that belong to both groups, saving time and money. The change kicks in right away, making regulation smoother and less costly for everyone involved.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
FINRA Will Oversee Common Rules
If your firm is a member of both 24X and FINRA (a “Dual Member”), FINRA will take responsibility for examining and enforcing compliance with 24X rules that are substantially similar to FINRA rules and certain federal securities laws. The SEC approved this Plan and declared it effective on May 27, 2025, and 24X is relieved of the responsibilities that the Plan assigns to FINRA, which the SEC says should reduce duplicate exams and lower costs for Dual Members.
24X Retains Market Surveillance Duties
If your firm is a Dual Member, 24X will still keep full responsibility for surveillance, examination, investigation, and enforcement for trading activity on the 24X marketplace, registration rules that are not listed as Common Rules, and its duties as a designated examining authority under Rule 17d-1. The Plan became effective on May 27, 2025, so these 24X responsibilities remain in place while other responsibilities shift to FINRA.
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