Explain what is the FINRA machine-readable rulebook initiative? How did it come to light and how does it work?
Haimera Workie, VP and Head of Innovation, FINRA
"FINRA's machine-readable rulebook initiative is really an effort that's designed to make the FINRA rulebook easier to navigate and understand, both with respect to individuals like you and me, but also with respect to computer systems. The initiative is composed of three parts.The first involves the development of taxonomy. And by taxonomy, we mean a set of terms that can be legal terms, business terms, but key terms that help identify what each of the rules relates to. For example, one key term maybe disclosure, and so we would tag all the rules that contain a disclosure element with this tag. Another key term could be record keeping, and we'd likewise tag the rules with that tag, and so forth. Once you have the rules tagged with appropriate terms, then you can access the information in the same way that you would do with things like online shopping sites like Amazon. For instance, on Amazon, if you're interested in looking at certain type of chair, whether it be kind of a certain height, a certain brand or certain color, you could go to a pull down menu and kind of specify which types of criteria you're looking for that will pull down the set of chairs that meet your criteria. And the same way, once you have the rules that are tagged, then you can say, you know, you're a certain type of firm that cares about things like say, for example, if we're talking about record keeping and disclosure requirements, and the rules that contain those elements would show up and make it easier for you to kind of identify which rules that you may be concerned about.