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On July 24, 2026, the Financial Industry Regulatory Authority (FINRA) published Regulatory Notice 26-15, requesting comment on modernizing its best execution guidance under FINRA Rule 5310. The consultation addresses how FINRA can update its principles-based standards for member firms' duty to obtain best execution of customer orders in light of significant market structure developments, particularly the Securities and Exchange Commission's (SEC) proposal to rescind the trade-through rule under Regulation NMS Rule 611. FINRA Rule 5310 requires member firms to exercise reasonable diligence to ascertain the best market for customer securities and execute orders at prices as favorable as possible under prevailing market conditions. Since Regulation NMS adoption in 2005, the trade-through prohibition has operated alongside broker-dealer best execution obligations. The SEC's proposed rescission of Rule 611 and related locked-and-crossed provisions under Rule 610(e) would eliminate structural protections that have shaped order handling practices for over twenty years. FINRA states that while its principles-based rule text remains appropriately calibrated, extensive interpretive guidance may require modernization to address evolving market conditions, including algorithmic trading, extended hours trading, emerging technologies, and institutional order handling complexities. FINRA's consultation encompasses nine key areas: best execution standards post-Rule 611 rescission; access fees and transaction costs; best execution review standards; institutional orders; introducing and receiving firm obligations; extended trading hours; held and not held orders; listed options; and emerging technologies including artificial intelligence and tokenized securities. The notice emphasizes that best execution obligations apply regardless of whether firms use traditional or emerging technologies, and requests specific data and factual support from commenters. The comment period expires on September 25, 2026. Interested parties may submit comments online through FINRA's comment form, by email, or by mail to Jennifer Piorko Mitchell, Office of the Corporate Secretary, FINRA, 1700 K Street, NW, Washington, DC 20006. All comments received will be made publicly available on FINRA's website.

On July 24, 2026 the US Financial Industry Regulatory Authority (FINRA) published a consultation on modernising its best execution guidance under FINRA Rule 5310 , as part of its FINRA Forward rule modernisation initiative. The Notice is issued in response to the SEC's June 2026 proposal to rescind Rule 611 (the trade-through rule) and Rule 610(e) (the prohibition on locking and crossing quotations in NMS stocks) under Regulation NMS, which currently backstop a broker-dealer's best execution obligations on an order-by-order basis. Key proposals include: Best execution post-rescission of Rules 611 and 610(e): FINRA seeks comment on the factors firms should consider when deciding whether to connect to specific execution venues, whether the National Best Bid and Offer (NBBO) will remain a meaningful benchmark following rescission, and the circumstances in which a member may access displayed liquidity at a price inferior to the best displayed price. FINRA is also considering potential safe harbours under Rule 5310 for executions pursuant to documented regular and rigorous methodologies and for large order executions meeting a specified benchmark. Access fees and transaction costs: The consultation looks into the relationship between venue access fees and the duty of best execution, and whether access fees should be reflected in the price obtained for the customer. Best execution review standards and order-by-order review: Whether order-by-order review should be required for internalised orders, and whether a smart order router (SOR) with built-in best execution logic should constitute an order-by-order review. Institutional orders: Application of Rule 5310 to institutional orders, including parent-child orders, algorithmic trading strategies, pre-negotiated block trades and directed orders, and whether operators of single-dealer platforms (SDPs) or request-for-quote (RFQ) platforms should owe institutional customers best execution obligations beyond those under Supplementary Material .08 to Rule 5310. Introducing and receiving firm obligations: Division of best execution responsibility in the order routing chain, including whether further guidance on the prohibition on interpositioning would be useful and whether the framework under Rule 5310.09(c) requires clarification. Extended trading hours: Guidance required for order handling, routing and execution during extended trading hours. Held and not-held order distinctions: The consultation explores what considerations may warrant treating retail customer orders as not held, what modifications to best execution obligations should follow, and whether guidance should permit flexibility to delay held orders in defined circumstances such as suspected fraud. Emerging technologies: FINRA seeks comment on how firms currently use artificial intelligence in order handling, routing or execution, and whether best execution guidance specific to tokenised securities is needed. Interested parties may submit comments to FINRA by 25 September 2026.

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Financial Industry Regulatory Authority Requests Comment on Modernizing Best Execution Guidance

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US Financial Industry Regulatory Authority Issues Consultation on Best Execution Guidance