NEW DATES FOR REG NMS COMPLIANCE
The SEC has postponed the Trading Phase date of Regulation NMS, as well as two other deadlines for the Order Protection and Access Rules.The SEC has once again extended its compliance dates for Regulation National Market System. The extension was granted after the NYSE asked for a one-month postponement of the Trading Phase date of Reg NMS. The SEC granted that extension as well as an extension to two other deadlines "to give automated trading centers additional time to complete the rollout of their new or modified trading systems. The Completion date of Oct 8, 2007 remains unchanged.
Order Protection Rule (Rule 611) and the Access Rule (Rule 610)
The Trading Phase date is now March 5, 2007 (previously Feb 5, 2007)
Pilot Stocks Phase date is now July 9, 2007 (previously May 21, 2007)
All Stocks Phase date is August 20, 2007 (previously July 9, 2007)
*The Order Protection Rule: Requires trading centers to establish policies and procedures to prevent "trade-throughs"-the execution of trades at prices inferior to the best-priced quotations displayed by automated trading centers. Automated trading centers must operate trading systems that comply with the automated response and other requirements of Reg NMS. The trading systems can be operated by an SRO or operated by a broker-dealer that displays its quotes on the NASD's Alternative Display Facility, according to an SEC document.
*Access Rule: is intended to assure fair access to quotations, limit fees for accessing quotations and require self-regulatory organizations (SROs) to prohibit their members from displaying quotations that lock or cross quotations previously displayed on other centers, according to the SEC document.
Still confused about what Reg NMS is? Read our Reg NMS Cheat Sheet.The SEC has once again postponed the Trading Phase date of Regulation NMS, as well as two other deadlines for the Order Protection and Access Rule.