To assist in the enforcement of the firm quote rule and to assist in the resolution of backing away allegations FINRA has developed the Firm Quote Compliance System (FQCS). A firm that feels that a market maker failed to honor its quote must file a complaint within five minutes of the incident. The Market Regulation Department will enter the complaint into the FQCS to assist it in determining if a violation has occurred.
Applying "THE FIRM QUOTE COMPLIANCE SYSTEM" to Securities Exams:
The FQCS allows FINRA to review the market conditions at the time of the allegation and to look for patterns of backing away. If FINRA feels that a firm failed to honor its quote it will usually award the aggrieved party a contemporaneous execution. A contemporaneous execution will result in a transaction at a price that is representative of the market conditions at the time of the allegation. If the aggrieved party fails to file a compliant within five minutes it does not relieve the firm who allegedly backed away of responsibility. However, failing to file a complaint on a timely basis makes the award of a contemporaneous execution less likely. Master these and other important concepts for the series 24 exam with the great series 24 resources here