FINRA expressed concern to the SEC that it has no quick means to stop disruptive trading activity after it has been identified without resorting to proceedings that can take years to complete. FINRA said it would be better able to protect investors and market integrity if it had the ability to issue cease-and-desist orders more quickly to stop obvious disruptive and manipulative trading.

"FINRA believes that there are certain clear cases of disruptive and manipulative behavior, or cases where the potential harm to investors is so large, that FINRA should have the authority to initiate an expedited proceeding to stop the behavior from continuing.”

Under current rules, FINRA can initiate temporary cease-and-desist orders to alleged manipulators but they only remain in effect until the underlying disciplinary proceedings have concluded. Only FINRA's CEO or a senior officer designated by the CEO, could initiate permanent cease-and-desist order proceedings, and only after other attempts to resolve the conduct had been attempted, FINRA said.

FINRA has proposed rules that take aim at practices known as "spoofing" and "layering," would allow FINRA to issue permanent cease-and-desist orders regardless of whether underlying disciplinary proceedings were taking place. The proposed changes are similar to rules adopted in February by exchange operator BATS Global Markets.