Mar. 3, 2022
Rule 10b5-1 and insider trading (2/15/2002) I’m addressing the amendment to rule 10b5-1(c)(1). I have interest in the amended rule for the fact that I currently hold a series 6 and 63 which covers the knowledge of ethical practices. This is a great amendment to the current rules sent in place to reduce the likelihood of insider trading. As stated in section II A. “First, the person must demonstrate that, before becoming aware of material nonpublic information, they had entered into a binding contract to purchase or sell the security, provided instructions to another person to execute the trade for the instructing individuals account, or adopted a written plan for trading the securities.” Following a baseline like the amendment sent in place will only reduce the likelihood of false allegations to a consumer or representative to anyone looking to purchase what may seem to others as securities acquired through insider trading. In my understanding, the actions set forth by the SEC will only provide security for all parties involved and can reduce the likelihood of false allegations. I stand by the new rules set in place and only see this as a universal benefit for all. - Frank Chavez