New Issues Rule

Refers to FINRA Rule 5130, which restricts the acquisition by brokers, their personnel and their related Persons (including Private Funds in which such Persons invest) of certain equity securities during an initial public offering. The New Issues Rule, in its current form, has evolved from a similar rule promulgated in 2003 by the National Association of Securities Dealers (a precursor to FINRA) that coined the phrase “hot issues.”