Are there any regulatory or compliance considerations tied to the FINRA‑set ex‑dividend date?

Regulatory/Compliance Take‑aways

• FINRA‑set ex‑dividend dates are a regulatory safeguard for OTC‑listed securities like AIJTY. Unlike NYSE‑listed stocks where the exchange itself determines the date, OTC markets rely on FINRA to designate the “record‑date” and “ex‑dividend” timing to protect investors from premature settlement or “late‑day” trades that could capture a dividend without actually owning the shares on the record date. As a result, any trader who buys the stock on or after September 9, 2025 will not be entitled to the special cash dividend, and any trade that settles before the ex‑date (i.e., a trade executed on September 8 or earlier) must be cleared through the standard T+2 settlement cycle.

• Compliance implications for traders and brokers:

  1. Order‑type discipline – Use “buy‑to‑open” orders that settle before the ex‑date if you want the dividend, and “sell‑to‑close” orders after the ex‑date to avoid a “dividend‑capture” strategy that could be flagged as market manipulation.
     
  2. Tax reporting – The dividend will be reported on Form 1099‑DIV for U.S. tax‑resident investors; non‑U.S. holders should verify treaty‑based withholding.
     
  3. Broker‑dealer record‑keeping – FINRA requires firms to flag ex‑dividend securities in their order‑routing and compliance monitoring systems to ensure proper settlement and to avoid “short‑ex‑div” violations that can lead to disciplinary action.
     
  4. Short‑sale restrictions – FINRA may impose a “short‑sale restriction” (the “ex‑dividend rule”) that prohibits short‑selling the security on the ex‑dividend date; check your broker’s policy.

Trading Implications

• Price dynamics: Expect an immediate “ex‑dividend drop” roughly equal to the dividend amount (≈ $X per share) on the September 9 open, with modest volume spikes as dividend‑eligible holders sell to lock‑in the payout. Technical traders should watch for a short‑term bearish bias, but the drop should be largely “mechanical” and often rebounds after the dividend is paid (mid‑September).

• Actionable strategy:
  
  If you seek the cash payout – buy AIJTY no later than September 8 (T+2 settlement will have you as a record holder). Limit exposure to 1–2 % of your portfolio given the modest dividend yield (≈ 0.2‑0.3 %).
  
  If you are dividend‑neutral – consider short‑selling after the ex‑date (once the price adjusts) while monitoring the “short‑sale restriction” that FINRA may enforce on the ex‑date; ensure your broker’s compliance system flags the trade.

In short, the FINRA‑set ex‑dividend date adds a compliance checkpoint—ensure settlement timing, respect short‑sale rules, and factor the predictable price dip into any short‑term technical play.