FINRA is developing a machine-readable rulebook to assist users to more readily analyze and search FINRA’s rules. It also is creating a prototype rulebook search tool – the FINRA Rulebook Search Tool (FIRST) – to allow users to explore the FINRA rulebook more easily.
The machine-readable rulebook will utilize an embedded taxonomy within certain FINRA rules, which can be more easily processed by a computer and, therefore, potentially less time-consuming, and costly.
The embedded taxonomy consists of terms that are expressly referenced in the rules as well as broader regulatory concepts and industry terms associated with the rules. The taxonomy is divided into two main categories—summary topics and detailed topics.
The summary topics include high-level, fundamental regulatory topics associated with the rules. These classifications allow users to identify a broader set of rules and select multiple topics that can further enhance the search process. The detailed topics are more comprehensive and particularized in scope. These are structured similar to topic indexing, allowing users to identify discrete topics associated with the rules.
FIRST and the application programming interface (API) are intended to facilitate regulatory compliance and enhance the overall experience for users searching FINRA rules. By launching the prototype, FINRA is seeking feedback on the further development of the taxonomy terms, the use and design of the prototype search tool, the API system, and any potential benefits or challenges associated with the overall user experience.
FINRA is seeking input on specific topics and questions relating these proposals. Some of these questions include:
- Are there other challenges that you currently encounter when searching for content on the FINRA rulebook that FIRST could help address?
- Does your firm currently rely on a taxonomy developed internally or by a third-party vendor? If so, how can existing taxonomies built by your firm most efficiently interact with a taxonomy developed by FINRA? Do you believe that the existence of a taxonomy developed by FINRA will make it more likely for your firm, and the industry as a whole, to incorporate new technologies into compliance functions?
- Does your firm currently rely on a taxonomy developed internally or by a third-party vendor? If so, how can existing taxonomies built by your firm most efficiently interact with a taxonomy developed by FINRA? Do you believe that the existence of a taxonomy developed by FINRA will make it more likely for your firm, and the industry as a whole, to incorporate new technologies into compliance functions?
- What is your view on the overall depth, quantity and quality of the taxonomy terms? Could it be improved and, if so, how?
To review the proposal in full and to offer comment, visit https://www.finra.org/rules-guidance/notices/special-notice-102122.