2026-13816NoticeWallet

SEC Proposes Routine Broker-Dealer Rule Extension

Published Date: 7/9/2026

Notice

Summary

The SEC is asking for comments to extend a rule that affects brokers and dealers who trade stocks. If they trade off an exchange they belong to, they usually have to join a special group called an Association, but some exceptions apply. This keeps trading fair and safe without adding extra costs or paperwork for most folks.

Analyzed Economic Effects

3 provisions identified: 0 benefits, 2 costs, 1 mixed.

Written Policies Required for Stock-Option Exemption

If a broker or dealer relies on the Rule 15b9-1 stock-option order exemption, it must establish, maintain, and enforce written policies and procedures to ensure transactions are solely for executing the stock leg of a stock-option order. Brokers must preserve a copy of those policies and procedures consistent with 17 CFR 240.17a-4 until three years after the policies are replaced.

Estimated Compliance Time Burden

The SEC estimates creating the required written policies takes about 8 hours per broker or dealer (annualized to 2.67 hours per year over three years) and ongoing maintenance/enforcement takes about 48 hours per broker or dealer per year. The Commission estimates 3 non-FINRA brokers or dealers may rely on the exemption, for aggregate initial burden of 8.01 hours per year, aggregate ongoing burden of 144 hours per year, and a total industry burden of about 152.01 hours per year.

Who Must Join a Registered Association

Under Section 15(b)(8) and amended Rule 15b9-1, any broker or dealer that effects transactions off an exchange of which it is not a member generally must join a registered national securities association, unless it fits narrow exceptions. The amended rule permits exemptions only where off-exchange transactions result solely from orders routed by an exchange to comply with Rule 611 of Regulation NMS or the Options Order Protection and Locked/Crossed Market Plan, or are solely for executing the stock leg of a stock-option order.

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Key Dates

Published Date
7/9/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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