SIA Seeks 9-12 Month Delay On NMS

By: Ray Pellecchia

File Under: NYSE

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The Securities Industry Association has written to the SEC asking to delay the new "order protection" rule for 9-12 months, saying brokerage firms and markets need more time to gear up for changes approved by the SEC last spring. This from Judith Burns at Dow Jones Newswires.

I'd offer a link, but the Ticker is by subscription only, the article was not picked up by the Journal, and I don't see the letter yet on the SIA's site, although it was reportedly sent to the SEC last week.

In a letter Friday to SEC staff, the industry group outlined a five-step
plan, which would start by having market self-regulatory groups such as the
New York Stock Exchange (NYX) and the Nasdaq Stock Market (NDAQ) file their
own rule changes and get them approved by the SEC by end of July. The SIA plan
calls for Wall Street to have until August or September to finalize policies,
procedures, and technical specifications, and to begin testing their new
systems by year-end. After a three to six-month trial period, the SIA proposed
that the order protection rule be phased in for one to two months before it
applies to all stocks.

The SIA cautioned that its proposed timetable may not provide enough time if
there are delays affecting new trading platforms, such as the NYSE's "hybrid"
market, which will blend traditional floor-based trading with automated
trading.