U.S. FINRA Market Making Payments

On November 28, FINRA consulted on rules for market making payments.

  • Retrospective review of rule on payment for market making to assess if effective.
  • Outlined retrospective rule review process, and sought responses from questions.

Restriction from Rule

  • Review working of FINRA Rule 5250, which restricted payment for market making.
  • Ban firm or associate accepting payment or consideration from an issue, affiliates
    and promoters, for publishing quotation, acting as a market maker, or application.
  • Viewed as conflict of interest, since may influence firm’s decision to make market.

Questions Asked

  • Asked if changes to market and delivery have superseded original purpose of rule.
  • Experience with implementation of the rule, including ambiguities and challenges.
  • Economic impact, including costs and benefits, in relation to the size of a member.
  • Can FINRA make the rule, interpretation or processes more efficient and effective.


  • Followed comments per FINRA April 2017 review on capital formation.
  • Comment period to January 29, 2018, when FINRA may propose modifications to rule.