FINRA To Seek Public Feedback On ‘Gamification’ Of Trading Platforms

Officials from the Financial Industry Regulatory Authority (“FINRA”) stated during the agency’s annual conference earlier this month that it will seek public feedback on the “gamification” used by some stock trading platforms.  
According to Law360, “gamification refers to the marketing tactics used by trading platforms, other online retailers or vendors to create a game-like experience for customers.”  On trading platforms, these tactics can include “so-called leaderboards highlighting the top traders of the day, Wheel of Fortune-like games promising trading incentives or digital confetti celebrating trades placed[.]”  According to a FINRA official quoted in Law360, while gamification has potential benefits, which include demystifying investing, educating investors, and encouraging people to save in “a way that’s more fun[,]” it can also be misused.  For example, as FINRA President and CEO Robert W. Cook explained in a recent statement before the Financial Services Committee of the U.S. House of Representatives, game-like features on trading platforms “may increase risks to customers by encouraging actions misaligned with customers’ investment objectives or risk tolerance, or distract customers from the financial consequences of trading decisions in favor of winning competitions or achieving social status.”
While FINRA has not finalized its approach for seeking input on gamification, it may use a notice or survey to gather industry feedback, which will be part of a broader FINRA effort to determine whether additional guidance or rules are needed to address these topics.  FINRA officials speaking at the conference “noted that any future rulemaking, guidance or regulatory actions would be pursued in lockstep with the U.S. Securities and Exchange Commission, which is taking its own measures to address the topic.”

About Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP focuses on complex civil litigation, including securities, antitrust, wage and hour, personal injury and consumer class actions as well as shareholder derivative and merger and transactional litigation. The firm is headquartered in New York, and maintains offices in California, Delaware, Georgia and Pennsylvania.

Since its founding in 1995, Faruqi & Faruqi, LLP has served as lead or co-lead counsel in numerous high-profile cases which ultimately provided significant recoveries to investors, direct purchasers, consumers and employees.

To schedule a free consultation with our attorneys and to learn more about your legal rights, call our offices today at (877) 247-4292 or (212) 983-9330.

About Katherine M. Lenahan

Katherine M. Lenahan is a Partner in the New York office of Faruqi & Faruqi, LLP and focuses her practice on securities litigation.

Tags: faruqi & faruqi, investigation, news, litigation, settlement notice, case, faruqi law, faruqi blog, faruqilaw, Katherine M. Lenahan, securities litigation Katherine M. Lenahan Katherine M. Lenahan
Partner at Faruqi & Faruqi, LLP

New York office
Tel: (212) 983-9330
Fax: (212) 983-9331
Social: LinkedIn

Finding us

Our Offices

Our offices are nationwide. If you have any questions about a case or our firm, please contact us.

New York

685 Third Avenue 26th Floor
New York, New York 10017
(212) 983-9330
(877) 247-4292
(212) 983-9331


10866 Wilshire Boulevard Suite 1470
Los Angeles, California 90024
(424) 256-2884
(424) 256-2885


3828 Kennett Pike Suite 201
Wilmington, Delaware 19807
(302) 482-3182
(302) 482-3612


3975 Roswell Rd Suite A
Atlanta, Georgia 30342
(404) 847-0617
(404) 506-9534


1617 JFK Boulevard, Suite 1550
Philadelphia, Pennsylvania 19103
(215) 277-5770
(215) 277-5771

Faruqi & Faruqi office in New York, New York

Faruqi & Faruqi office in Los Angeles, California

Faruqi & Faruqi office in Wilmington, Delaware

Faruqi & Faruqi office in Atlanta, Georgia

Faruqi & Faruqi office in Philadelphia, Pennsylvania