"Out with the old, in with the new,"  according to Traders Magazine, as the 3 U.S. exchanges operated by NYSE Euronext will change their rules governing trading ahead.  The current language of Rule 92 (NYSE, Amex) and Rule 6.16 (Arca) will be replaced by FINRA's newly updated Manning rule, Rule 5320.  The NYSE, Amex and Arca received SEC permission to make the change this month. 

The changeover is part of the rulebook harmonization process that's been underway at FINRA and NYSE-Regulation for the past 4 years.

In general, including FINRA Rule 5320, all 4 rules prohibit traders from trading for their own accounts ahead of or alongside customer orders at the same price - i.e., front-running.  The SEC approved new FINRA Rule 5320 in February and FINRA has set 9/12/11 as the rule's effective date.  The NYSE Euronext exchanges will do the same.

Each NYSE exchange will also adopt 5320 as its rule, to be consistent with FINRA.  Likewise, there will be exceptions for certain large orders from institutional accounts;  for trading done by separate market making desks; riskless principal trades; intermarket sweep orders; and other circumstances.

FINRA and NYSE Regulation have been working on a universal trading-ahead rule since 2007.  The move to harmonize their respective rules was a key part of a master plan by the two regulators to eliminate as many duplications from their respective rulebooks as possible.  The plan was the driving force behind the merger of the NASD (now FINRA) with parts of NYSE-Reg in 2007.   [Traders Magazine Online, 8/30/11]