FINRA CEO Robert Cook affirmed before your home Financial Services Subcommittee on Capital Markets, Securities and Investment relating to (i) FINRA’s program, structure and efforts, (ii) the function that self-regulation plays in the United States capital markets, and (iii) FINRA’s relationship with and oversight by the SEC (see ready remarks and composed testament).
Mr. Cook highlighted the FINRA360 effort, a program to evaluate FINRA’s organizational performance (see previous protection), as an example of FINRA’s dedication to extensive advancement and enhancement. Mr. Cook specified that FINRA360 stimulated several actions planned to enhance FINRA’s performance, consisting of combining the company’s enforcement functions (see previous protection). Mr. Cook recognized numerous other actions taken by FINRA to “meet the needs of financiers,” consisting of:
broadened reporting of U.S. Treasury securities deals;
developing the Securities Helpline for Seniors;
using cloud technology to carry out market security; and
introducing the Innovation Outreach Initiative, a FinTech-focused effort created to help with engagement with market individuals worrying technological advancements in the monetary markets.
Mr. Cook asserted that FINRA continues to enhance its evaluation procedures, in addition to the compliance resources that are offered to market members. In addition, he stated that FINRA is committed to stopping “bad stars,” and indicated several actions required to achieve this objective (e.g., proposals for the oversight of “high-risk” brokers).
Mr. Cook defined several locations on which FINRA will focus for the rest of the year, consisting of possibly violent trading algorithms, cross-market and cross-product adjustment, order routing practices, best execution and disclosure, and market gain access to controls. He also defined many other rulemaking and procedural efforts that FINRA is carrying out pursuant to a retrospective guideline evaluation under FINRA360.