Manning rule

The Manning rule is an informal name for a financial industry rule in the United States: Financial Industry Regulatory Authority (FINRA) regulation, Rule 5320.

The Manning rule prohibits a FINRA member firm from placing the firm's interest before/above the financial interests of a client.

For example, when a securities firm is holding a customer limit order (a limit order is an instruction to buy or sell securities at a certain price), the firm cannot ignore that order.

The firm cannot trade for their account using a price that would satisfy the customer's limit order without executing the customer limit order. The rule is applicable both in normal trading hours and in the extended hours trading sessions.

The rule is named after William Manning, a co-founder of Manning & Napier (an investment management firm), who's been an advocate for investor protection.[1]

References

  1. ↑ "Manning & Napier – About – The Manning Rule". Retrieved 2015-07-02.

External links

This article is issued from Wikipedia - version of the Friday, July 03, 2015. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.