FINRA Opens Review of Best Execution Guidance

FINRA is asking for public comment on whether its best execution guidance should be updated as part of its FINRA Forward rule modernization initiative.

The review centers on FINRA Rule 5310, which requires broker-dealers to use reasonable diligence to find the best market for customer orders. FINRA says the review is happening against a backdrop of market-structure changes, including the SEC’s proposal to rescind the trade-through rule under Regulation NMS.

The notice asks how FINRA should update, streamline or clarify its guidance while preserving a principles-based best execution standard. Comments are due by September 25, 2026.

For retail traders, the practical issue is order routing. Best execution rules affect how brokers evaluate venues, price improvement, execution speed, payment-for-order-flow arrangements and other factors that can influence the final result of a stock or options order.

Why it matters

Broker comparison often focuses on commissions, spreads and platform tools, but execution quality can matter just as much for active traders. A rule-guidance review could eventually affect how firms document routing decisions and how clearly they explain execution practices to customers.

If market structure changes weaken or remove older routing guardrails, best execution obligations may become an even more important source of investor protection.

What to watch next

The comment deadline is September 25, 2026. Watch for broker, exchange, market-maker and investor-advocate responses, especially on whether FINRA should add more specific guidance or keep the standard flexible.