14 Feb 2025
⚖️Nasdaq Expands Authority on Disciplinary Proceedings
Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Order Approving Proposed Rule Change To Assume Operational Responsibility for Litigating Contested Disciplinary Proceedings Arising Out of Nasdaq-Led Investigations and Enforcement Activities and Amend Rules 9131 and 9810 (the Nasdaq Discipline Rules) To Grant Nasdaq Regulation the Same Authority as FINRA in Contested Disciplinary Proceedings To Serve Complaints and Memoranda of Authority
Summary
The Securities and Exchange Commission has approved Nasdaq's proposal to assume greater operational responsibility for litigating contested disciplinary proceedings. This rule change allows Nasdaq to directly manage investigations and enforcement actions arising from its own initiatives, streamlining the regulatory process while maintaining procedural protections for its members.
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The regulatory text details Nasdaq's expanded authority to handle disciplinary proceedings, which impacts businesses by potentially altering their compliance obligations. Companies operating under Nasdaq may face direct oversight from Nasdaq rather than FINRA, affecting their legal and regulatory strategies.